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.

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Question: Drinking water production
A worker currently works a total of 12 hours a day for 240 bottles of water. S/he thinks that with the use of a more practical and new label, S/he can increase the daily number of bottles up to 360 bottles of water. The total material cost for each bottle of water is approximately $3.50; needs to invest $20 per day in necessary materials; her/his energy costs are assumed to be only $4.00 per day, and s/he figures S? he should earn $10 per hour for her/his time.
Looking at the above mentioned scenario from a total (multi-factor) 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? (10 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).(10 points)
c) What would the total (multifactor) productivity change be if the new practice increased material cost by $0.50 per bottle of water with the use of labels? Explain briefly. (20 points)
d) If it uses new and practical labels, how much can material costs increase without reducing total (multi-factor) productivity? Explain briefly. (20 points)
e) Show the efficiency figures calculated in part (a) on the graph. Explain briefly.
(20 points)
f) Let's assume that the inflation rate increases by 2% when you start using new and practical labels. Calculate total factor productivity in case of 2% inflation. Explain briefly. (20 points)
 Steps for Question: Drinking water production A worker currently works a

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