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1.9 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:
1.9 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: 400 hours per day @12.50 per hour Raw material: 20,000 pounds per day @$1 per pound Energy: $5000 per day Capital costs: $10,000 per day a. What is the labor productivity per hour for these tires? b. What is the multifactor productivity for these tires? c. What is the percent change in multifactor productivity if Upton can reduce the energy bill by $1000 per day without cutting production or changing any other output?
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