Illustrate what is percent change in multi-factor product

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Reference no: EM1377919

Q. David Upton is President of Upton Manufacturing, a producer of Go-Kart tires. Upton makes 1000
tires per day with the subsequent resources:
Labour: 400 hours @ $12.50 per hour
Raw material: 20,000 pounds per day @ $1 per pound
Energy: $5,000 per day
Capital: $10,000 per day

(a) Illustrate what is the Labour productivity for these tires at Upton Manufacturing?

(b) Illustrate what is the multifactor productivity for these tires at Upton Manufacturing?

(c) Illustrate what is the percent change in multi-factor productivity if Upton can reduce the energy bill by $1,000 without cutting production or changing any other inputs?

 

 

Reference no: EM1377919

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