o KKTCELL . 2:48 PM fbemoodle.emu.edu.tr Aghaei, RD 307, iman.aghaei@ emu.edu.tr
ID: 346931 • Letter: O
Question
o KKTCELL . 2:48 PM fbemoodle.emu.edu.tr Aghaei, RD 307, iman.aghaei@ emu.edu.tr Question: Hüseyin Mustafa Mercan is the first wicker chairmaker in Lefke area in Cyprus and currently working a total of 10 hours per day to produce 100 wicker chairs. He thinks that by changing the way that he employs for making wicker chairs, he can increase his rate to 120 wicker chairs per day. Total materia cot for each wicker chair is approximately $6; he has to invest $8 in the necessary supplies (expendables) per day; energy costs is assumed to be only $4 per day; and he thinks he should be making S20 per hour for his time. Viewing the above scenario from total (multifactor) productivity perspective, a) What is the first wicker chairmaker's productivity before and after the changes that have been made? b) Explain whether the changes that have been made by the first wicker chairmaker were beneficial or not. (You should show e.g calculate productivity growth rate) your calculations which support your e o) How would be total (multifactor) productivity change if the changes that have been made increases material costs by S1 per wicker chair? d) Plot productivity figures calculated in section a, on a graph. e Explain the whole scenario based on the answers estimated and the graph plotted in section (d). Notes: You are advised to use word program for the quizzes assigned. 2) If not, pages should be clearly written and numbered. 3) Your quiz will not be accepted without cover page. Good LuckExplanation / Answer
A.
B.
We see the advantage is $ 28 with the new change hence it surpasses the $ value expectation of $20 hourly. Hence its beneficial.
Again the productivity:
C.
If the Material cost is increased by $ 1
Now we get:
There is a decrease in the multifactor productivity.
W H Mustafa total working hours 10 P H Mustafa total production of wicker chairs 100 Pv H Mustafa total productivity = Pv= P/W 10 Chairs per hour Ans A Before W H Mustafa total working hours after 10 P H Mustafa total production of wicker chairs after 120 Pv H Mustafa total productivity = Pv= P/W 12 Chairs per hour Ans A AfterRelated Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.