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Verizon [17]
3 years ago
12

A company creates 40 units of a product using 30 hours of labor and 15 sheets of paper. Labor costs $10/ hour and paper costs $5

0 per sheet. Each unit of the product sells for $75. What is the firm's multifactor productivity measure for labor and paper?
Business
1 answer:
Scorpion4ik [409]3 years ago
8 0

Answer:

0.038 units per $ of factor costs

Explanation:

Labor cost for 40 units  = 30 hours × $10/hour = $300

Cost of paper for 40 units = 15 sheets × $50/sheet = $750

Output = 40 units

Multi factor productivity is expressed as;

Multi factor productivity = Output/Total Factor cost

Multi factor productivity = 40 units/$1050 = 0.038 units per $ of factor cost

Multi factor productivity is a measure that depicts units produced for every $ of factor products used. In the above case 2 factors i.e labor and paper are used.

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Capitalism encourages businesses to be more efficient to compete successfully on:.
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Given what we know, we can confirm that capitalism encourages businesses to be more efficient to compete successfully on the price and quality of the product.

<h3>Why does capitalism encourage this competition between businesses?</h3>
  • This is due to the fact that through capitalism, there are more entities offering the same service.
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2 years ago
The decision to purchase a good or service or a customer benefit package is based on an assessment by the customer of the percei
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The decision to purchase a good or service or a customer benefit package is totally based on the price of that package or a good and on the benefits that a consumer will received after the purchase. A rational consumer will compare the price of a good with the perceived benefits. If the perceived benefits worth greater or equal to price then a consumer may purchase that product otherwise not. Therefore, a consumer's decision is largely depend upon the ratio of price and benefits.

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