The Big Brother Box (3B) produces packing boxes for the local vegetable farms. Currently, they are making 500 boxes per day, in two 8-hour shifts (250 boxes per shift). The company has introduced some moderate changes in equipment, and conducted appropriate employee training, so that production levels have risen to 330 boxes per shift. Labor costs average $10 per hour for each of the 5 full-time workers on each shift. Capital costs were previously $3000 per day, and rose to $3900 per day with the equipment modifications. Energy costs were unchanged by the modifications, at $460 per day. What is the 3B's multifactor productivity after the changes?

The Big Brother Box (3B) produces packing boxes for the local vegetable farms. Currently, they are making 500 boxes per day, in two 8-hour shifts (250 boxes per shift). The company has introduced some moderate changes in equipment, and conducted appropriate employee training, so that production levels have risen to 330 boxes per shift. Labor costs average $10 per hour for each of the 5 full-time workers on each shift. Capital costs were previously $3000 per day, and rose to $3900 per day with the equipment modifications. Energy costs were unchanged by the modifications, at $460 per day. What is the 3B's multifactor productivity after the changes?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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