What is the percent change in multifactor productivity


A Go-Kart tire manufacturer makes 1000 tires per day with the following resources:

Labor: 400 hours per day @ 12.50 per hour
Raw material: 20,000 pounds per day @ $1 per pound
Energy: $5000 per day
Capital: $10,000 per day

What is the percent change in multifactor productivity if the manufacturer can reduce the energy bill by $2000 per day without cutting production or changing any other inputs?

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Operation Management: What is the percent change in multifactor productivity
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