Answer to Question #73962 in Microeconomics for Zulfiqar Ali

Question

In one production period, a firm produced an output rate of 1,000 using 50 units of capital and 40 units of labor. In a later period, output was 1,500 units, the capital input was 60 units, and the labor input was 45 units. The base period input prices are r = 5 and w = 10. Determine total factor productivity in each period and the Percentage of change in that productivity between the two periods.