Question: Steps for Question: Drinking water production A worker currently works a total of 1 2 hours a day for 2 4 0 bottles of water.
Steps for
Question: Drinking water production
A worker currently works a total of hours a day for bottles of water. She thinks that with the use of a more practical and new label, She can increase the daily number of bottles up to bottles of water. The total material cost for each bottle of water is approximately $; needs to invest $ per day in necessary materials; herhis energy costs are assumed to be only $ per day, and she figures he should earn $ per hour for herhis time.
Looking at the above mentioned scenario from a total multifactor productivity perspective and answer the following questions.
a What is the productivity of the relevant worker at this moment with the practical use of labels? points
b Explain whether the changes made were beneficial or not. You need to show calculations that support your explanation; for example, calculate the productivity growth rate points
c What would the total multifactor productivity change be if the new practice increased material cost by $ per bottle of water with the use of labels? Explain briefly. points
d If it uses new and practical labels, how much can material costs increase without reducing total multifactor productivity? Explain briefly. points
e Show the efficiency figures calculated in part a on the graph. Explain briefly.
points
f Let's assume that the inflation rate increases by when you start using new and practical labels. Calculate total factor productivity in case of inflation. Explain briefly. points
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