Question 5

a. A poultry farmer with his current equipment is able to produces 240 crates of eggs per 100 birds and each bird required 3 labor hours to produce an egg. He believes that he can hire a professional who can help produce a better-quality bird for more eggs at the same cost. If this is the case, he increases his production to 260 crates per 100 birds. His labour hours increase by 8 hours per day. i. What will be the impact on productivity (measured in crates per labor hour) if the professional is hired?

ii. What is the growth in productivity in this case?

b. Assuming in AIT, a student fee per semester credit hour is GH 100.The average class size for typical three credit hour course is 50 students. Labour, material and overhead cost are GH 4000 per class, GH 20 per student, GH 25,000 per class respectively. If a lecturer delivering the lecture work 14 hours per week for 16 weeks the previous semester, i. what is the multifactor productivity ratio? ii. a lecturer works an average, what is the labour productivity ratio?