Question 1

(a)

Shown below are details on all variable inputs consumed by Samsung Plasma TV factory in 2014. At these consumption rates, the plant was able to produce 14,000 TVs per year.

	Consumption rate		Unit cost ($)
Chemical	2.8	Liter per day	5	per liter
Plastic	3.4	KG per week	6	per KG
Electric	650	Watt per year	0.6	per watt

Assume that all inputs unit cost is constant and the factory operating schedule is as follows; 6 days per week, 3 weeks per month and 12 months per year.

Keep two decimal point for all calculation. Please show calculation steps for partial credit.

(i)

Determine the productivity of Plastic

(ii)

Determine the multi productivity for all inputs listed in the table.

(iii)

Assume that in year 2013, the multi productivity for all inputs is equal to 8.5 TV per dollar. Discuss THREE mathematical conditions of output and input in year 2014, that would lead towards your answer in part 1a(iii).