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Abstract
Valid measures of the changing output of the marketing system in comparison with the
inputs of resources such as labor are of basic importance in appraising the efficiency of
the marketing system, in determining those segments of the system where possibilities for
improvement are marked, and in examining a wide variety of other economic questions.
Attempts to improve measures of input-output relationships have been beset by numerous
difficulties relating to the quality of output, the fact that some output is in the form of
service attached to a product rather than a physical commodity, the problems of disassociating
inputs of different types of factors, and other questions regarding the nature of
inputs. This article reports various methods that can be employed in the measurement
of output per unit of labor and suggests the difference or bias that can result when various
concepts are used. The methods employed produce findings that give a picture of trends
in output per unit of labor input. As further Departmental studies yield improved
measures of these relationships, they will be reported.