Paro Products Co.has provided the following information for last year: The total factor productivity measure is:
A)$150,000
B)$312,000
C)1.154
D)0.832

Question

Quizplus · Accepted Answer

Total factor productivity is calculated as the ratio of total outputs to total inputs. The information provided doesn't give us the actual values for total inputs and total outputs, but based on the options provided, we can calculate the TFP using the formula TFP = Total outputs/Total inputs.

Option A and B are not correct, as they are just monetary values and cannot be used to calculate TFP.

Option C gives us a TFP measure of 1.154, which means that the company was able to produce 1.154 units of output for every unit of input used.

Option D is not correct, as it gives us a value less than 1, which is not possible for TFP measures.