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1. For producing 1000 pizza, 20 labour hour, 800 kg material and $1000 capital cost are needed. If total costs of inputs is $5000, what is the total factor productivity?
2. A currently makes 500 boxes per day, in two 8-hour shifts (250 boxes per shift). The company has introduced some moderate changes in equipment so that production levels have increased to 300 boxes per shift. Labour costs average $10 per hour for each of the 5 full-time workers on each shift. Capital costs were previously $3,000 per day, and rose to $3,200 per day with the equipment modifications. Energy costs were unchanged by the modifications, at $400 per day. What is the firm's multifactor productivity before and after the changes?
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