Answer Happy

Adam Smith is the president of NorthZone manufacturing, producer of bicycle tires for North America. Adam makes on average 2,400 tires per day with the following resources: Each tire is sold at $ 25.00 Labour : 50 workers on 8 hour shift per day. Worker is being paid @ $16.50 per hour. Factory works only 5 days a week. Raw material: 100,000 Kgs of material is consumed per week @ cost of $ 2.75 per kg (Note: pay attention to units) Energy cost per week is $ 25,000 and with a capital cost of $50,000 per week. a) What is the labour productivity at the factory (show up to two decimal places)? (1.5 points) b) What is the multifactor productivity (show up to 4 decimal places)? (1.5 points) c) What is the percent change in multifactor productivity, if Adam can reduce the energy bill by 10% per week without cutting production or changing to any other inputs? (2 points)