A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment the company used five workers, who produced an average of 80 carts per hour Workers receive $10 per hour, and machine cost was 540 per hour Win the new equipment, it was possible to transfer one department, and equipment cost increased by $10 per hour, while output increased by four carts per hour workers to another.
a. Compute labor productivity under each system Use carts per worker per hour as the measure of ubor productivity.
b. Compute the multifactor productivity under each system
