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Question: True Value Jeans currently produces 60 pairs of jeans in an 8-hour day. The costs of production include:
Raw material .....$10.00/pair
Labor ...............3 workers, $20/hour
Energy .............$1/hour of machine time
Machines ..........3 machines, $10/hour
a. Calculate the labor productivity for True Value, i.e., how many jeans can be produced per hour of labor?
b. Calculate the multifactor productivity for True Value, i.e., how many pairs of jeans can be produced per dollar spent?
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