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A consumer product company sets up two manufacturing sites, one in country A and the other in country B. Country A is a newly industrialised
A consumer product company sets up two manufacturing sites, one in country A and the other in country B. Country A is a newly industrialised country, while country B is a developing country. The company collects the following data to evaluate the productivity at each site. Country A Country B Sales (units) 200,000 40,000 Labour (hours) 30,000 20,000 Raw Materials ($) $150,000 $20,000 Equipment (hours) 80,000 5,000 Data can be interpreted as follows: take country A as an example, country A uses 30,000 labour hours, 80,00 equipment hours, and $150,000 worth of raw materials to produce 200,000 units of product. (a) Measure the single-factor labour productivity and single-factor equipment productivity for the two countries. For each type of productivity, compare the results of the two countries, what conclusion can you draw? Is there any unexpected conclusion
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