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Consider - a small manufacturing company which produces high quality furniture has provided the following data:
2000 2001
Output: (cost of sales) $2.2m $3.5m
Inputs:
Labour $1m $1.5m
Material and supplies $0.8m $1.25m
Capital equipment depreciation $0.07m $0.48m
Compare all partial factor and total factor productivity for 2000 and 2001.
What conclusions do you draw?
What would you recommend to the company if they asked you to advise them in improving their operations?
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