Moaaz Chishti $04/04/246$:$20$ PM

Question $7,$ Problem $1\mathrm{.}8$

HW Score: $46\mathrm{.}67\%,9\mathrm{.}33$ of $20$

Part $3$ of $3$

points

$ox3$ Points: $0\mathrm{.}67$ of $2$

Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes $1,000$ tires per day with the following resources:

$\backslash$table$[[$Labor:$,425$ hours per day @ $$12\mathrm{.}50$ per hour$],[$Raw Material:,$21,000$ pounds per day @ $$1\mathrm{.}50$ per pound$],[$Energy:$,$$$5,250$ per day$],[$Capital:$,$$$10,000$ per day$]]$

a$)$ Labor productivity per labor hour for these tires $=2\mathrm{.}35$ tires$/$labor hour $($round your response to two decimal places$).$

b$)$ Multifactor productivity for these tires $=0\mathrm{.}0192$ tires$/$dollar $($round your response to four decimal places$).$

c$)$ The percent change in multifactor productivity if Fok can reduce the energy bill by $$950$ per day without cutting production or changing any other inputs $=\%($enter your response as a percentage rounded to two decimal places$).$

Note: calculate the new multifactor productivity to four decimal places before calculating the percentage change.