Question
The Dulac Box plant produces wooden packing boxes to be used in the local seafood industry. Current operations allow the company to make 400 boxes
The Dulac Box plant produces wooden packing boxes to be used in the local seafood industry. Current operations allow the company to make 400 boxes per day, in two 8-hour shifts (200 boxes per shift). The company has introduced some moderate changes in equipment, and conducted appropriate job training, so that production levels have risen to 800 boxes per day (400 boxes per shift). Labor costs average $15 per hour for each of the 5 full-time workers on each shift. Capital costs were previously $2400 per day and rose to $3400 per day with the equipment modifications. Energy costs were unchanged by the modifications, at $400 per day. Please keep Two digits for productivity.
a. Before the change, the total output is ____ boxes; inputs is $____ ; the multifactor productivity is ____ boxes/dollar.
b. After the change, the total output is ____ boxes; inputs is $____ ; the multifactor productivity is ____ boxes/dollar.
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