Question

The percent change in multifactor productivity if Fok can reduce the energy bill by ​$1,000 per day without cutting production or changing any other inputs​

Answer 1

Answer:

The answer is "2.45%".

Explanation:

The answer of option c:

Reduce power by 950 dollars:

In this question it will need to once again take the latest energy cost for analytical hierarchical productivity.  

→ Total Input  $= 400 \times 12+21000 \times 1 +(5000-950)+10000$

                     $= 4800 +21000 + (4050)+10000 \\\\ = 25800+4050+10000 \\\\ = 39850$

Consumer rates  $= \frac{1,000}{39,850}$

                            $=0.0250$

Initial efficiency multi-factor= 0.0245

$\to \text{percentage changes} = \frac{\text{New Multi Factor Productivity - Previous Multi-Factor Productivity}}{\text{Originbal Multi-Factor Productivity}}$  

                                   $= \frac{(0.02450.0251)}{0.0245}\\\\ = 2.45 \ \ \%$