Measure the single-factor labour productivity and single-factor equipment productivity for the two countries. For each type of productivity, compare the results of the two countries, what conclusion can you draw? Is there any unexpected conclusion? (b) Compute the multifactor productivity for labour and equipment together for the two countries. Compare the results of the two countries, what conclusion can you draw? Do you think the conclusion is reasonable, compared to those in (a)? (c) Compute the single-factor raw material productivity for the two countries. Compare the results of the two countries, what conclusion can you draw? Do you think the conclusion is reasonable? Why or why not?
A consumer product company sets up two manufacturing sites, one in country A and the other in country B. Country A is a newly industrialised country, while country B is a developing country. The company collects the following data to evaluate the productivity at each site.
| Country A | Country B | |
| Sales (units) | 200,000 | 40,000 |
| Labour (hours) | 30,000 | 20,000 |
| Raw Materials ($) | $150,000 | $20,000 |
| Equipment (hours) | 80,000 | 5,000 |
Data can be interpreted as follows: take country A as an example, country A uses 30,000 labour hours, 80,00 equipment hours, and $150,000 worth of raw materials to produce 200,000 units of product.
(a) Measure the single-factor labour productivity and single-factor equipment productivity for the two countries. For each type of productivity, compare the results of the two countries, what conclusion can you draw? Is there any unexpected conclusion?
(b) Compute the multifactor productivity for labour and equipment together for the two countries. Compare the results of the two countries, what conclusion can you draw? Do you think the conclusion is reasonable, compared to those in (a)?
(c) Compute the single-factor raw material productivity for the two countries. Compare the results of the two countries, what conclusion can you draw? Do you think the conclusion is reasonable? Why or why not?
Hi, may i request to have an original answer to this? Would also like to request for additional explanations to the steps. Thank you
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