Question

Question 1A team of six workers assembles furniture. If this team can assemble 240 chairs in five days, working eight hours per day, what are:

The team’s labor productivity in chairs per day?

The team’s labor productivity in chairs per hour?

One worker’s labor productivity in chairs per day?

One worker’s labor productivity in chairs per hour?

If a refining operation can extract $150 worth of output from $45 worth of materials, what is the operation’s material productivity?

Question 2:The refining operation from the previous question requires the following inputs to produce $150 worth of output:

$45 of materials

$25 of energy

$30 of labor

$20 of machinery

What is the operation’s multi-factor productivity?

Answer 1

Answer to question 1 :

Number of chairs produced per day = 240 / 5 = 48

Number of chairs produced per hour ( 8 hours a day = 48/ 8 = 6

Number of workers = 6

One worker’s labour productivity in chairs per day = Number of chairs produced per day / Number of workers = 48/6 = 8

One worker’s labour productivity in chairs per hours = Number of chairs produced per hour / Number of workers = 6/6 = 1

Refining operation’s material productivity = Output / Material input = $150/ $45 = 3.33

Answer to question 2 :

Value of output = $150

Total value of input

= Value of ( material + energy + labour + machinery )

= $45 + $25 + $30 + $20

= $120

Multifactor productivity = Value of output / Total value of input = 150 / 120 =1.25