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As part of a study for the department of labor statistics, you are
As part of a study for the Department of Labor Statistics, you are assigned the task of evaluating the improvement in productivity of small businesses. Data for one of the small businesses you are to evaluate is shown below. The data are the monthly average of last year and the monthly average this year. Determine the multifactor productivity using the following costs:
• Labor: $8 per hour;
• Capital: 0.83% per month of investment;
• Energy: $.60 per BTU.
Monthly Average
Last Year This Year
Production (dozen) 1,500 1,500
Labor (hours) 350 325
Capital Investment ($) 15,000 18,000
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