Head to www.bls.gov and select Multifactor Productivity from the Subject drop-down menu. Scroll down and select the PDF version of the
Preliminary Multifactor Productivity Trends, 2013 . Do your best to answer the following questions.
What has been the general trend for multi-factor productivity in the U.S. over the past twenty years?
What does this trend suggest has happened to production functions in the U.S.?
Assuming this change in productivity has happened to all firms, how will this change in productivity affect cost curves?
Solution
1
multi-factor productivity trends in the four industries, that is output
divided by total factor input at time t, For petroleum, the multi-factor productivity trend is very similar to the
labor productivity trend. That is, productivity declines steadily to only 33% of the 1970 level
by the early 1980
.
Head to www-bls-gov and select Multifactor Productivity from the Subje.docx
1. Head to www.bls.gov and select Multifactor Productivity from the Subject drop-down menu.
Scroll down and select the PDF version of the
Preliminary Multifactor Productivity Trends, 2013 . Do your best to answer the following
questions.
What has been the general trend for multi-factor productivity in the U.S. over the past twenty
years?
What does this trend suggest has happened to production functions in the U.S.?
Assuming this change in productivity has happened to all firms, how will this change in
productivity affect cost curves?
Solution
1
multi-factor productivity trends in the four industries, that is output
divided by total factor input at time t, For petroleum, the multi-factor productivity trend is very
similar to the
labor productivity trend. That is, productivity declines steadily to only 33% of the 1970 level
by the early 1980
