Each Day a Firm Produces 50 Products Worth $40 Each

question 63

Multiple Choice

Each day a firm produces 50 products worth $40 each. Raw materials cost per unit are $12. The firm uses 4 workers on an eight-hour shift earning $10 per hour each. What is the multifactor productivity ratio?

• A) 1.82
• B) 0.77
• C) 3.16
• D) 0.12
• E) 2.17

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Definitions:

Annual Interest Rate

The yearly rate charged by a lender to a borrower, expressed as a percentage of the principal loan amount.

Lottery Winnings

Income received from winning lotteries, which is often subject to taxation.

Semiannual Payments

Payments made twice a year as part of a financial agreement, often seen in the context of bonds or loans.

Interest Rate

The percentage of the principal amount charged by a lender to a borrower for the use of assets, usually expressed as an annual rate.