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You produce 1000 bicycle tires per day with the following resources:
Labor
400 hours per day @ $12.50 per hour
Raw material
20,000 lbs per day at $1 per k
Energy
$5,000 per day
Capital Costs
$10,000 per day
a. What is the labor productivity per labor hour for these tires?
b. What is the multifactor productivity for these tires
c. What is the percent change in multifactor productivity of you can reduce your energy bill by $1,000 per day without changing other inputs?
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