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Productivity and processes

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What is the problem with using dollars as part of a productivy measure?

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Solution Summary

This solution gives an explaination of why the dollar (or income from a product) is not necessarily a good measuring stick for productivity in a business. It also includes an example of why.

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If you think about the question of why we shouldn't use the dollar, or any other monetary note to measure productivity, is should be pretty easy to see. The value of the dollar, in this instance, changes daily. All you have to do is watch the news. The value of a product also changes as supply ...

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