Which scenario describes the highest level of productivity

Which scenario describes the highest level of productivity? A. Producing $50 chairs using resources that cost $400 B. Producing a 100 chairs using resources that cost $200 C. Producing 15 chairs using resources that cost $150 D. Producing 5 chairs using resources that cost $100

The Correct Answer and Explanation is :

The scenario that describes the highest level of productivity is B. Producing 100 chairs using resources that cost $200.

Explanation:

To determine the highest level of productivity, we need to calculate the productivity ratio for each scenario. Productivity is measured as the output (in this case, the number of chairs produced) divided by the input (the cost of resources used). The formula for productivity is:

[
\text{Productivity} = \frac{\text{Output}}{\text{Input}}
]

Let’s calculate the productivity for each scenario:

• Scenario A: Producing 50 chairs with resources that cost $400
  [
  \text{Productivity} = \frac{50 \text{ chairs}}{400 \text{ dollars}} = 0.125 \text{ chairs per dollar}
  ]
• Scenario B: Producing 100 chairs with resources that cost $200
  [
  \text{Productivity} = \frac{100 \text{ chairs}}{200 \text{ dollars}} = 0.5 \text{ chairs per dollar}
  ]
• Scenario C: Producing 15 chairs with resources that cost $150
  [
  \text{Productivity} = \frac{15 \text{ chairs}}{150 \text{ dollars}} = 0.1 \text{ chairs per dollar}
  ]
• Scenario D: Producing 5 chairs with resources that cost $100
  [
  \text{Productivity} = \frac{5 \text{ chairs}}{100 \text{ dollars}} = 0.05 \text{ chairs per dollar}
  ]

Comparison of Productivity Ratios:

• Scenario A: 0.125 chairs per dollar
• Scenario B: 0.5 chairs per dollar
• Scenario C: 0.1 chairs per dollar
• Scenario D: 0.05 chairs per dollar

Clearly, Scenario B has the highest productivity ratio of 0.5 chairs per dollar spent. This means that for each dollar spent on resources, Scenario B produces the most chairs, which is the most efficient use of resources.

Thus, Scenario B represents the highest level of productivity, as it provides the most output (chairs) for the least amount of input (cost of resources).