MGCR 472 Final: Solutions to Productivity Examples on Slides.pdf

• School: McGill University
• Department: Management Core
• Course: MGCR 472
• Professor: Derek Wang

Document Summary

Suppose we hire very efficient workers who can finish the job in 350 hours. What is now the mfp with labor rate of /hr. So, using more efficient workers, company increased its profitability. However we have to pay higher wages for the more efficient workers. Then (10000*10)/(350*x+5000+25000) = 2. 9 (see page 20 on slides on how to obtain 2. 9) => solve the equation => x = 12. 80 $/hr. If the firm increases the wage by more than 12. 80 9 = 3. 80 $/hr, the mfp will fall below the original level. Student tuition at mcgill"s desautels faculty of management is per term per credit hour. Average class size for a typical 3-credit course is 50 students. per class, material costs are per student per class, and overhead costs are.