Productivity Model

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  • To aid in determining productivity, it is necessary to use a model with which it is possible to calculate the results of the real process, income distribution process, and production process. Such a model is called the productivity model. The starting point is a profitability calculation, using surplus value as a criterion of profitability. The surplus value calculation is the only valid measure for understanding the connection between profitability and productivity or understanding the connection between the real process and production process. A valid measurement of total productivity necessitates considering all production inputs, and the surplus value calculation is the only calculation to conform to the requirement.

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