For the data in Problem 1, suppose Firm B is a foreign firm. What additional caveats would you…

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For the data in Problem 1, suppose Firm B is a foreign firm. What additional caveats would you place on interpretation of the data?

Problem 1

A company has gathered the following financial information for itself and a competing firm. They wish

to compare productivity for the two firms (all numbers in 000s).

a. Compute partial and total factor productivity measures for Firms A and B.

b. What is the picture you get of the two firms?

c. What would you suggest to the management of Firm B?

 

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