A cleaning company uses $10 of chemicals, $40 of labor, and $5 of misc. expenses for each house it cleans. After some quality complaints, the company has decided to increase its use of chemicals by 50%. By what percentage has multifactor productivity fallen? A) 0% B) 8.3% C) 25% D) 50% E) 16.7%

B) 8.3%

Explanation:

The multifactor productivity is given the ratio between output (amount charged per each house cleaned) and input (chemical, labor and misc. expenses)

Let x be the amount charged per housed cleaned, the original and new productivities are:

The rate by which the multifactor productivity has fallen is:

The multifactor productivity has fallen by 8.3%.

answer; foreign exchange transaction;

answer decisions made by individual households and firms;