A company offers ID theft protection using leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $17 per hour per employee. Each employee identifies an average of 3,900 potential leads a week from a list of 4,800. An average of 8 percent of potential leads actually sign up for the service, paying a one-time fee of $90. Material costs are $1,300 per week, and overhead costs are $9,100 per week. Calculate the multifactor productivity for this operation in fees generated per dollar of input.

MFP = $6.77 per dollar of input

Explanation:

Multifactor productivity (MFP) compares total output produced by total inputs consumed. It is very useful when comparing productivity between companies that have different sales volumes and costs. In this case, for every $1 or input, the firm obtains $6.77.

MFP = (possible leads x number of workers x fee x conversion percentage) /  (labor costs + materials costs + overhead costs)

MFP = (3,900 leads x 3 workers x $90 x 8%) /  [(3 employees x 40 hours x $17) + $1,300 + $9,100]

MFP = $84,240 / $12,440 = 6.77

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy