QUESTION 9 A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour while output increased by four carts per hour. Which measure, labor productivity or multifactor productivity, is the better measurement? Labor productivity, it is straight forward. Multifacor productivity, because labor productivity missed the cost change of machine, which is not an accurate measurement of the productivity change. They are the same. I don't know. :(