SOLUTION: Prior to buying new equipment, a company used five workers, who produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the
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Question 558416: Prior to buying new equipment, a company used five workers, who produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour while output increased by 4 carts per hour.
a. Compute the labor productivity for each system (old and new equipment)
b. Compute the multi factor productivity for each system (use carts per dollar cost)
c. Comment on the changes in productivity according to the two measures, and on which one you believe is the more pertinent for this situation.
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
The Labor Productivity is the total output VALUE divided by the total productive hours. You didn't bother to share the value of one of the 80 carts produced nor did you provide a time period over which to calculate the LP.
The Multi-Factor Productivity is the total output VALUE divided by a multi-factor value representing capital, labor, energy, materials, and services. You didn't bother to share the value of capital, energy, materials, services or the time period to be analyzed. Hence, we don't have a prayer of coming up with a meaningful number for KLEMS.
Finally, this is a Mathematics help site, which would have been fine had you provided the formulas you need to use and ALL of the values required. But since you apparently need help with the underlying Economic concepts, you need an Economics help site. Try Cramster.
John
My calculator said it, I believe it, that settles it
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