Model Answer of Tutorial 1

Model Answer of Tutorial 1 - Before: 80 ÷ 5 = 16 carts per...

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Model Answer of Tutorial 1 (Productivity) 1. Higher productivity this week. 2. (1) (2) (3) (4) (5) (6) (7) Worker Week Output Cost@ $12x40 Overhead Cost @1.5 Material Cost@$6 Total Cost MFP (2) ÷ (6) 1 30,000 2,880 4,320 2,700 9,900 3.03 2 33,600 3,360 5,040 2,820 11,220 2.99 3 32,200 3,360 5,040 2,760 11,160 2.89 4 35,400 3,840 5,760 2,880 12,480 2.84 Multifactor productivity dropped steadily from a high of 3.03 to about 2.84 3. a.
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Unformatted text preview: Before: 80 ÷ 5 = 16 carts per worker per hour. After: 84 ÷ 4 = 21 carts per worker per hour. b. Before: $10 x 5 = $50 + $40 = $90; hence 80 ÷ $90 = .89 carts/$1. After: $10 x 4 = $40 + $50 = $90; hence 84 ÷ $90 = .93 carts/$1. c. Labor productivity increased by 31% (5/16). Multifactor productivity increased by 4.5% (.04/.89)....
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This note was uploaded on 03/19/2012 for the course ECON 101 taught by Professor Mohamed during the Spring '12 term at Manor.

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