Joanna French is currently working a total of 12 hours per day to produce 300 dolls. She thinks that by changing the paint used for the facial features and fingernails that she can increase her rate to 450 dolls per day. Total material cost for each doll is approximately 350 cents; she has to invest $20 in the necessary supplies (expendables) per day; energy costs are assumed to be only $30.00 per week (7days); and she values her time at 20 cents per minute for her work.

(a) Viewing this from a total (multifactor) productivity perspective, what is her productivity (dolls per dollar) at present and with the new paint?

(b) How would total productivity change if using the new paint raised Ms. Frenchs material costs by 50 cents per doll?

(c) If she uses the new paint, by what amount could Ms. Frenchs material costs increase without reducing total productivity?