Factor Productivity Calculator

More about Factor Productivity so you can better understand the results provided by this solver. The idea behind factor productivity is to compute how many units of output will one unit of input produce

\[ \text{Factor Productivity} = \displaystyle \frac{\text{Output Produced}}{\text{Input Used}}\]

How to Deal with More than One factor

The main concept is the same when computing factor productivity for more than one factor, and what you need is to quantify the ration output produced over inputs used.

When dealing with multifactor productivity, this is, calculating productivity associated to more than one factor, you want to find a common unit for all factors.

For example, you may want to compute the multifactor productivity for capital and labor and you will measure capital in dollars and labor in hours. So how can you put both inputs with the same unit?

A simple solution is to use dollars for capital and quantity the cost of labor in dollars too, so both factors use a common unit (dollars).

If you want to compute the productivity with many factors (inputs) instead of only one, please try instead this multifactor productivity calculator