At Modern Lumber Inc., Moise Ngwenya, the producer of apple crates sold to growers, currently produces 240 crates per 100 logs with his existing equipment. He purchases 100 logs per day, and each log requires 3 labor-hours to process. He is considering hiring a professional buyer to acquire better-quality logs at the same cost. With these logs, production could increase to 260 crates per 100 logs, and labor hours would increase by 8 hours per day.

What will be the impact on productivity (measured in crates per labor-hour) if the buyer is hired?

If Moise Ngwenya hires a professional buyer who can purchase better-quality logs at the same cost, he will be able to increase his production to 260 crates per 100 logs. However, his labor hours will increase by 8 hours per day.

To calculate the impact on productivity, we need to compare the number of crates produced per labor-hour before and after hiring the buyer.

Before hiring the buyer:
- Moise produces 240 crates per 100 logs.
- He purchases 100 logs per day, which requires 3 labor-hours to process.
- So, he produces 240 crates in 3 labor-hours.
- Therefore, his productivity is 240 crates / 3 labor-hours = 80 crates per labor-hour.

After hiring the buyer:
- Moise will be able to produce 260 crates per 100 logs.
- He will purschse the same 100 logs per day, but his labor hours will increase by 8 hours, so the total labor-hours will be 3 + 8 = 11 labor-hours.
- So, he will produce 260 crates in 11 labor-hours.
- Therefore, his productivity will be 260 crates / 11 labor-hours = 23.64 crates per labor-hour.

Therefore, if Moise Ngwenya hires the professional buyer, his productivity will decrease from 80 crates per labor-hour to approximately 23.64 crates per labor-hour.

I hope this helps! Let me know if you have any further questions.

Know more about Moise Ngwenya here:

https://brainly.com/question/26519460?referrer=searchResults

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