Calculate labor productivity for each of the weeks shown. Use the best measure of output and labor available. b. Now calculate multifactor productivity for each of the weeks shown. Explain your results imply in terms of dollars of output
The manager of a crew that installs wood floors has tracked the crew’s output over the past several weeks. Each worker works 40 hours per week, and earns $21 per hour. The wholesale cost of lumber to the company is $6 per square foot, and the company charges its customers $15 per square foot of flooring installed. The firm’s
Week Crew Size Lumber Used (sq. ft) Flooring Installed (sq ft)
1 4 480 420
2 2 250 238
a. Calculate labor productivity for each of the weeks shown. Use the best measure of output and labor available.
b. Now calculate multifactor productivity for each of the weeks shown. Explain your results imply in terms of dollars of output
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
