David Upton is president of Upton Manufacturing, a producer of Go-Kart tires. Upton makes 1,000 tires per day with the following resources: Labor: Raw material: Energy: Capital costs:

a) What is the labor 400 hours per day @ $12.50 per hour 20,000 pounds per day @ $1 per pound $5,000 per day $10,000 per day productivity per labor-hour 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 per day without cutting pro- duction or changing any other inputs?