Q1: Usher Dash is president of Dash Manufacturing, a producer of Go-Kart tires. Dash makes 870,000tires per day with the following resources:Labor1670 hours per day @ 225 per hourRaw Material900,000 pounds per day @ Rs.10 per poundEnergyRs.87,000 per dayCapitalRs.560,000 per daya) What is the labor productivity per labor hour for these tires?b) What is the multifactor productivity for these tires?c) What is the percentage change in multifactor productivity if Upton can reduce the energy bill byRs.13,000 per day without cutting production or changing any other input?What is the capital productivity per tire per rupee?

Productivity of an input refers to the amount of goods produced by the single unit of input. Labor…

Q1: Usher Dash is president of Dash Manufacturing, a producer of Go-Kart tires. Dash makes 870,000 tires per day with the following resources: Labor 1670 hours per day @ 225 per hour Raw Material 900,000 pounds per day @ Rs.10 per pound Energy Rs.87,000 per day Capital Rs.560,000 per day

Q1: Usher Dash is president of Dash Manufacturing, a producer of Go-Kart tires. Dash makes 870,000 tires per day with the following resources: Labor 1670 hours per day @ 225 per hour Raw Material 900,000 pounds per day @ Rs.10 per pound Energy Rs.87,000 per day Capital Rs.560,000 per day

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 5P

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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

Q1: Usher Dash is president of Dash Manufacturing, a producer of Go-Kart tires. Dash makes 870,000
tires per day with the following resources:
Labor
1670 hours per day @ 225 per hour
Raw Material
900,000 pounds per day @ Rs.10 per pound
Energy
Rs.87,000 per day
Capital
Rs.560,000 per day
a) What is the labor productivity per labor hour for these tires?
b) What is the multifactor productivity for these tires?
c) What is the percentage change in multifactor productivity if Upton can reduce the energy bill by
Rs.13,000 per day without cutting production or changing any other input?
What is the capital productivity per tire per rupee?

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