Productivity Model

Productivity Model deals with the relationship between the resources used in production and the final output. It usually falls into one of three categories, these are models based on a specific company, models based on an entire industry, and models based on an entire national economy. It is a measurement method which is used in practice for measuring productivity. Productivity model is a more complicated and detailed version of a production function. It must be able to solve the formula Output / Input when there are many different outputs and inputs.