A Swiss manufacturing company that operates two manufacturing plants€”one in the United States and the other in India€”shows the following results (all figures are in U.S. dollars):

1. Compute the partial productivity measure for labor, materials, and equipment. How would you account for productivity differences between these two locations?
2. Compute the multifactor productivity measure using all inputs. Is this a better productivity measure? Why?

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United States India Sales 2,500,000 1,800,000 Labor 300,000 350,000 Raw materials Capital equipment 170,000 120,000 360,000 200,000