Productivity & Operating leverage
Unit 5.6 - Productivity & Operating leverage (AO2, AO4) This section of the HL only syllabus requires students to understand the following 4 aspects of productivity: (i) labour productivity (ii) capital productivity (iii) the productivity rate, and (iv) operating leverage (AO2, AO4). In general terms, productivity refers to how well productive resources are used to generate the output of goods and services. Labour...