A farmer grows two crops: lettuce and beans. The farmer uses three inputs: labor, seed, and fertilizer. The past prices and the quantities of each are given in the following tables: Physical Quantities Past Last This Inputs/outputs Prices Year Year Outputs: Lettuce $1500/ton 500 tons 600 tons Beans $1300/ton 200 tons 100 tons Inputs: Labor $10/hour 1,000 hrs. 1,200 hrs. Seeds $12/pound 300 lbs. 320 lbs. Fertilizer $500/ton 10 tons 12 tons
Required:
a. Calculate productivity measures for last year and this year using past prices.
b. Calculate the percentage change in productivity.