Excellent Mugs Inc. produced 1,600,000 units in 2017 at a units of output per dollar of input cost was $0.09. Its cost of input at 2017 prices that would have been used in 2016 was $20,000,000. How much did the total factor productivity (TFP) increase as a result of 2017 operations?

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TFP = (Q2017/Q2016) * (I2016/I2017) - 1= (1,600,000/1,500,000) * (20,000,000/18,000,000) - 1= 1.067 - 1= 0.067 or 6.7%