David Upton is president of Upton Manufacturing, a producer of Go-Kart tires. Upton makes 1,000 tires per day with following resources
|
Labor: |
400 hour @ $ 12.50 per hour |
|
Raw material: |
20,000 pounds per day @ $ per pound |
|
Energy: |
$ 5,000 per day |
|
Capital: |
10,000 per day |
a) What is the labor productivity for these tires at Upton Manufacturing?
b) What is the multifactor productivity for these tires at Upton Manufacturing?
c) What is the percent change in multifactor productivity if Upton can reduce the energy bill by $1,000 without cuitting production or changing any other inputs?
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