a) What is the labour productivity per labour-hour for these tires at Upton Manufacturing? b) What is the multifactor productivity for these tires at Upton Manufacturing? c) What is the percent change in multifactor productivity if Upton can reduce the energy bill by $1000 per day without cutting pro- duction or changing any other inputs?

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David Upton is president of Upton Manufacturing, a producer of Go-Kart tires. Upton makes 1000 tires per day with the
following resources: Labour:
400 hours per day @ $12.50 per hour
Raw material:
20 000 pounds per day @ $1 per pound
Energy:
$5000 per day
Capital costs:
$10 000 per day
a) What is the labour productivity per labour-hour for these tires at Upton Manufacturing?
b) What is the multifactor productivity for these tires at Upton Manufacturing?
c) What is the percent change in multifactor productivity if Upton can reduce the energy bill by $1000 per day without cutting
pro- duction or changing any other inputs?
Transcribed Image Text:David Upton is president of Upton Manufacturing, a producer of Go-Kart tires. Upton makes 1000 tires per day with the following resources: Labour: 400 hours per day @ $12.50 per hour Raw material: 20 000 pounds per day @ $1 per pound Energy: $5000 per day Capital costs: $10 000 per day a) What is the labour productivity per labour-hour for these tires at Upton Manufacturing? b) What is the multifactor productivity for these tires at Upton Manufacturing? c) What is the percent change in multifactor productivity if Upton can reduce the energy bill by $1000 per day without cutting pro- duction or changing any other inputs?
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