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