The Dulac Box plant produces wooden packing boxes to be used in the local seafood industry. Current operations allow the company to make 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 job training, so that production levels have risen to 300 boxes per shift. Labor costs average $10 per hour for each of the 5 full-time workers on each shift. Capital costs were previously $3,000 per day, and rose to $3,200 per day with the equipment modifications. Energy costs were unchanged by the modifications, at $400 per day. What is the firm's multifactor productivity before and after the changes?
MFP before: 500 boxes / ($10 × 5 × 16 + $3000 + $400 ) = 500 / 4200 = 0.119 boxes/dollar
MFP after: 600 boxes / ($10 × 5 × 16 + $3200 + $400 ) = 600 / 4400 = 0.136 boxes/dollar
You might also like to view...
A steady state is a situation in which the key variables in the model
A. are constant or else growing at a constant rate. B. are growing at a decreasing rate. C. are endogenous. D. measure zero.
When developing a bad news message regarding organizational news, what should be done to minimize long-term financial implications?
A) Be open and transparent. B) Seek expert advice. C) Use multiple channels to reach affected audiences. D) Look for positive angles. E) Match your approach to the situation.
Identify whether the statements pertaining to overcoming resistance are do's or don'ts.
A. Understand why people resist change. B. Discuss the pros and cons. C. Persuade and encourage team members. D. Let misunderstandings linger. E. Demand that team members complete tasks and meet goals.
________ is the opportunity cost of investing in an asset relative to the expected return on assets of similar risk
Fill in the blanks with correct word