Question
Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources: Labor: 425 hours
Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources:
Labor: | 425 hours per day @ $12.00 per hour |
Raw Material: | 21,000 pounds per day @ $1.50 per pound |
Energy: | $5,250 per day |
Capital: | $10,250 per day |
a) Labor productivity per labor hour for these tires =
2.352.35 tires/labor hour
b) Multifactor productivity for these tires =
tires/dollar (round your response to four decimal places).
c) What is the percent change in multifactor productivity if Fok
can reduce the energy bill by $1,000 per day without cutting
production or changing any other inputs?
PLS ANSWER B AND C. THX.
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