Question
The Chula Box plant produces wooden packing boxes to be used in the seafood industry. Current operations allow the company to make 10400 boxes per
The Chula Box plant produces wooden packing boxes to be used in the seafood industry. Current operations allow the company to make 10400 boxes per day, in two 8-hour shifts (5200 boxes per shift).
The company has introduced some moderate changes in equipment, and conducted appropriate job training, so that production levels have risen to 5700 boxes per shift. Labor costs average 200 THB per hour for each of the 5 full-time workers on each shift. Capital costs were previously 6292 THB per day, and rose to 7280 THB per day with the modifications. Energy costs were unchanged by the modifications, at 1200 THB per day.
a. What is the firm's labor productivity before and after the changes?
b. What is the firm's multifactor productivity before and after the changes?
c. Were the changes beneficial?
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