An Industrial Plant Needs to Make 100,000 Parts Per Month

question 44

Essay

An industrial plant needs to make 100,000 parts per month to meet demand. Each month contains 20 working days, each of which allows for 3 separate 8 hour shifts.
a. If a worker can produce 10 parts/hour, how many workers are needed on each shift?
b. If each shift has 100 workers, what is the productivity of an individual worker?
c. If material costs are $10/part, capital costs are $100,000 and labour costs are $10/hour, what is the multifactor productivity of the plant from part A?

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Definitions:

Housing and Financial Crisis

A period of extreme stress in financial markets and banking systems, often leading to a downturn in the housing market and economy.

Short-run Phillips Curve

A graphical representation that shows the inverse relationship between the level of unemployment and the rate of inflation in the economy over the short-term.

Inflation

The rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling.

Unemployment

Occurs when individuals who are actively seeking work are unable to find employment. It is typically measured as a percentage of the labor force.