Problem:
The Minister responsible for Trade and Industry has assigned you the task of evaluating the improvement in productivity of manufacturing businesses in South Africa. Data for one of the businesses you are to evaluate is provided. The data are the monthly average of last year and the monthly average for this year. Labour: R8 per hour Capital: 0.83% per month of investment Energy: R0.60 per BTU Production (dozen) Labour (hours) Capital Investment (R) Energy (BTU) Last Year 1,500 350 15,000 3,000 This Year 1,500 325 18,000 2,700
Determine the multi-factor productivity for last year and this year.