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    Calculating the productivity measures

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    A farmer grows two crops: lettuce and beans. The farmer uses three inputs: labor, seed and fertilizer. The past prices and the quantities of each are given in the following tables:

    Physical Quantities
    Past Last This
    Inputs/outputs: Prices Year Year
    Outputs:
    Lettuce $1500/ton 500 tons 600 tons
    Beans $1300/ton 200 tons 100 tons

    Inputs:
    Labor $10/hour 1000 hrs 1200 hrs
    Seeds $12/pound 300lbs 320 lbs
    Fertilizer $500/ton 10 tons 12 tons

    Required:

    a) Calculate productivity measures for last year and this year using past prices.

    b) Calculate the percentage change in productivity.

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    https://brainmass.com/business/accounting/calculating-the-productivity-measures-442403

    Solution Preview

    a) Calculate productivity measures for last year and this year using past prices.

    Productivity last year=Total output value last year/Total input ...

    Solution Summary

    Solution provides the step by step method to calculate the productivity measures.

    $2.19

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