Suppose that weekly output is worth $1000, and labor and materials costs are $300 and $200, respectively. What is the multifactor productivity ratio? a. 1000b. 8c. 2d. 3e. 0.5

c. 2

Explanation:

The multifactor productivity ratio can be determined using the below mentioned formula:

Multi factor productivity=Output worth/cost of material+cost of labor

In the given question:

Output worth=$1,000

cost of material+cost of labor=$300+$200=$500

Multifactor productivity=$1,000/$500=2

So based on the above calculation, the answer is c. 2