Thinking Beyond, and applying your excel skills:

Consider your work on excel and your knowledge of productivity. Assume a firm has the output of $2000,$ and the input of $3$ resources: Labor $(10$ hours at $$15$ per hour$),$ Steel $(100$ Gallons at $$100$ per gallon$)$ and Machine time $(10$ hour at $$400$ per hour$).$ Given this, Which of the following is correct multifactor productivity and correct interpretation?

NOTE: Please be careful to round to all calculations to three decimals for each step, and choose the closest answer.

Question $14$ options:

The MFP is computed as the sum of last year's resources $($$$14,150)$ divided by the total output $(2,000).$ The MFP is $7\mathrm{.}075,$ suggesting that for each one unit of resources, we are able to produce $7\mathrm{.}075$ units.

The MFP is computed as the sum of the output $(2300)$ divided by the sum of the resources utilized to make the products $($$$15,025).$ The MFP is $0\mathrm{.}153.$ This suggests that for each unit of resources, we are able to produce $0\mathrm{.}153$ units of output.

The MFP is computed as the sum output $(2000)$ divided by the total resources utilized to make the products $($$$14,150).$ The MFP is $0\mathrm{.}141.$ This suggests that for each $0\mathrm{.}141$ units of resources, we are able to produce one unit of output.

The MFP is computed as the sum of the output $(2000)$ divided by the total resources utilized to make the products $($$$14,150).$ The MFP is $0\mathrm{.}141.$ This suggests that for each unit of resources, we are able to produce $0\mathrm{.}141$ units of output.