Discuss the below:
Q: Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources:
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Labor:
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400 hours per day @ $12.50 per hour
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Raw Material:
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20,000 pounds per day @ 1.00 per pound
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Energy:
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$5,250 per day
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Capital:
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$10,250 per day
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a) Labor productivity per labor hour for these tires =tires/labor hour
b) Multifactor productivity for these tires = tires/dollar
c) The percent change in multifactor productivity if Fok can reduce the energy bill by$950 per day without cutting production or changing any other inputs
d) The overall total input (not reduction) for a 55% increase in multifactor productivity