Posted: September 20th, 2016

You have a company that makes 30000 light bulbs per day with the following resources: -Labor: 250 hours per day @15.00 per hour -Raw Material: 60,000 pounds of glass per day @ $0.50 per pound -Energy: $10,000 per day -Capital: $3500 per day a) What is the productivity per labor hour for light bulbs you make?

You have a company that makes 30000 light bulbs per day with the following resources:
-Labor: 250 hours per day @15.00 per hour
-Raw Material: 60,000 pounds of glass per day @ $0.50 per pound
-Energy: $10,000 per day
-Capital: $3500 per day

a) What is the productivity per labor hour for light bulbs you make?
b) What is the multifactor productivity of these bulbs?
c) What is the percentage decrease in the multifactor productivity if your company’s energy bill doubles without cutting production or changing any other inputs?