1. Give two examples of:

a) Single-factor productivity measures

b) multi-factor productivity measures

2. A refrigerator manufacturer can produce 100 refrigerators per hour and currently runs a ten-hour shift with a one-hour lunch break. If it adds two additional fifteen-minute breaks during the shift while maintaining its hourly productivity, what will be the changes to its:

a) Design capacity

b) Effective capacity

3. For the following assumptions of the cost-volume model, explain why they should be limited to narrow production ranges:

a) Constant revenue per unit of output

b) Constant variable cost per unit of output

c) Fixed costs applicable to the entire production range