Question
Joanna French is currently working a total of 12 hours per day to produce 240 dolls. She thinks that by changing the paint used for
Joanna French is currently working a total of 12 hours per day to produce 240 dolls. She thinks that by changing the paint used for the facial features and fingernails that she can increase her rate to 360 dolls per day. Total material cost for each doll is approximately $3.50; she has to invest $20 in the necessary supplies (expendables) per day; energy costs are assumed to be only $4.00 per day; and she thinks she should be making $10 per hour for her time.
How would total (multifactor) productivity change (in %) if using the new paint raised Ms. Frenchs material costs by $0.50 per doll?
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