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A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labour content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who produced an average of 90 carts per hour. Workers receive $14 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $12 per hour while output increased by 5 carts per hour. a. Compute labour productivity under each system. Use carts per worker per hour as the measure of labour productivity. (Round your answers to 2 decimal places.) b. Compute the multifactor productivity under each system. Use carts per dollar cost (labour plus equipment) as the measure. (Round your answers to 2 decimal places.)
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