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Rubber Meets the Road produces motorcycle tires.
They make 1200 tires per day with the following resources:
400 labor hours per day paying $12 per hour; 20,000 pounds per day of raw material at a cost of $1.50 per pound; $5,000 per day for electricity; and $10,250 per day for capital expense.
What is the multi-factor productivity for these tires?
The change in Productivity for the above problem if they are able to reduce the energy bill by $950 per day without cutting production?
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