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Question $1.$

A car company modifies $375$ cars per year. The manager is interested in obtaining

a measure of overall performance. He has asked you to provide him with a multifactor measure of last year's performance as a benchmark for future comparison.

You have assembled the following data. Resource inputs were labour, $10,000$ hours; $500$ kilowatt$-$hours of energy. Average labour cost last year was $20$ per hour, kits cost $1,000$ each and energy costs were $3$ per kilowatt$-$hour.

What do you tell the manager?

Question $2.$

The Kleen Karpet Kompany cleaned $65$ rugs in October, consuming the following resources:

Labour: $520$ hours at $13$ per hour

Solvent: $100$ litres at $5$ per litres Machine rental: $20$ days at $50$ per day

a$)$ What is the labour productivity per euro?

b$)$ What is the multifactor productivity?