total factor productivity

Definition

A measure of the output of an industry or economy relative to the size of all of its primary factor inputs. The term, and its acronym TFP, often refers to the growth of this measure, as measured by the Solow residual. See also Hicks-neutral technical progress.

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You need to take into account the total factor productivity and see if there is any way to improve on it.

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The measurement on the general productivity of an organization relative to the space of all its primary factor inputs is called total factor productivity

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Since the industry was booming, their total factor productivity measures continued to grow as well. They saw no end in sight and were excited about the possibilities.

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