Question: Problem 3 : Answer the following questions using the below information: Tires produced 1 0 0 0 Labour 5 0 0 hours per day x

Problem 3:
Answer the following questions using the below information:
Tires produced 1000
Labour 500 hours per day x $12.50 per hour
Raw material 30,000 pounds per day x $1 per pound
Energy $6000 per day
Capital costs $15,000 per day
a) What is the labour productivity per labour-hour?
b) What is the multifactor productity?
c) What is the percent change in multifactor productivity if there is a reduction in the energy bill by $1000 per day without cutting production of changing any other inputs?

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