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Student tuition at the University of Arizona is $100 per semester credit hour. The state subsidizes school revenue by matching student tuition dollar-for-dollar. Average class size for a typical class is 50 students. For each three-hour course, labor costs are $4,000 per class. Material costs are $20 per student per class, and overhead costs are $25,000 per class.

A. What is the multifactor productivity ratio for the average course?

B. If instructors work an average of 14 hours per week for 16 weeks for each class of 50 students, what is the labor productivity ratio?

 

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