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Business, 29.07.2020 01:01 ajbrock1004

1. Use the following information to answer the question(s) below. A company has gathered the following financial information for itself and a competing firm. The company wishes to compare productivity for the two firms: Firm A Firm B
Labor $30,000 $16,000
Plant and equipment 200,000 150,000
Energy 17,500 20,500
Materials 200,000 180,000
Sales 1,200,000 900,000
a. Compute partial and total factor productivity measures for Firms A and B.
b. What is the picture you get of the two firms?
c. What would you suggest to the management of Firm B?
2. For the firms in Problem 1, you have been asked to make a report to the management of Firm A. What are some of the caveats relating to accounting practices that you would include in the report? Which numbers should be interpreted cautiously?
3. For the data in Problem 1, suppose Firm B is a foreign firm. What additional caveats would you place on interpretation of the data?

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