Heisenberg makes a controversial product for distribution throughout the American Southwest. Heisenberg and staff work a total of 36 hours per batch and pays $340 per hour. The product, a lovely sky blue, requires 11 gallons of methylamine at a cost of $165 per gallon plus 200 pounds of additional materials at an average cost of $34 per pound. Typically, a batch produces about 47 pounds of product which sells on the streets for 950 per ounce.
What is the total factor productivity for Heisenberg?
What is the labor productivity for Heisenberg?
If the price of methylamine doubles tomorrow, what is the increase in the sales price required to keep the total factor productivity identical to the answer for part 1 of this question?