Question: Please only help answer questions 12 and 13. Please show work. Thank you. 1.) A company that makes shopping carts for supermarkets and other stores

Please only help answer questions 12 and 13. Please show work. Thank you.

1.) A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour while output increased by four carts per hour.

a.) What is the labor productivity with the new equipment (use carts per worker per hour as the measure of labor productivity)?

b.) What is the multifactor productivity before buying new equipment (consider labor and equipment as inputs)? (Please keep two digits after the decimal point.)

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