Question: Refer to Exercise 15-3. Suppose the following input prices are provided for each year: Required: 1. Compute the profit-linked productivity measure. By how much did

Refer to Exercise 15-3. Suppose the following input prices are provided for each year:


Refer to Exercise 15-3. Suppose the following input prices are


Required:
1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity?
2. Calculate the price-recovery component for 2010. Explain itsmeaning.

2009 2010 Unit price (power) Unit price (materials) Unit selling price S 2 10 $1

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