Case study

A company named BIG APPLE CO. Data for output and input are given below.
Output = Rs2000 Human input = 600 Material input = 400 Capital input = 600 Energy input = 200 Other expense input = 100

Sol.

Partial productivities:

Human productivity = output/human input = 2000/600 = 3.33 Material productivity = output/material input = 2000/400 = 5 Capital productivity = output/capital input = 2000/600 = 3.33 Energy productivity = output/energy input = 2000/200 = 10 Other expense productivity = output/other expense input = 2000/100 = 20 Total-factor productivity = net output/ (labor + capital) input = total output material and services purchased/ (labor + capital) input
=2000-400+100 600+600 =1.41