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Total factor productivity continuation of 13 37 Refer to the data
Total factor productivity (continuation of 13-37). Refer to the data for problem 13-38. Assume the fabric costs $4 per yard in 2009 and $4.10 per yard in 2008.
1. Compute Guble Company’s total factor productivity (TFP) for 2009.
2. Compare TFP for 2009 with a benchmark TFP for 2008 inputs based on 2009 output.
3. What additional information does TFP provide that partial productivity measures do not?
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