A company that makes widgets recently purchased some new equipment that reduces the labour content of the jobs needed to produce the widgets.

Prior to buying the new equipment, the company used six workers. They produced an average of $60$ widgets per hour.

Labour and machine costs were $$10$ per hour and $$41$ per hour, respectively.

With the new equipment, it was possible to transfer one of the workers to another department. In addition, machine cost increased by $$13$ per hour while output increased by $10$ widgets per hour.

Complete the following table:

Before Purchasing the New Equipment After Purchasing the New Equipment

Number of workers Answer

Answer

Output $($Widgets per hour$)$ Answer

Answer

Labour input $($Workers$)$ Answer

Answer

Labour productivity $($Widgets per worker per hour$)$ Answer

Answer

Labour cost $($$ per worker per hr$)$ Answer

Answer

Total labour cost $($$ per hr$)$ Answer

Answer

Total machine cost $($$ per hr$)$ Answer

Answer

Total cost $($$ per hr$)$ Answer

Answer

Multifactor productivity $($Widgets per $$)$ Answer

Answer

What was the change in labour productivity? Answer

What was the change in multifactor productivity? Answer

Which of the following productivity measures is the most appropriate for this situation? Answer

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