Economics 19th Edition by Stanley Brue, Cambell McConnell, Campbell McConnell, Sean Masaki Flynn, Sean Flynn

Exercise 1

Table 2.1 contains information on three techniques for producing $ 15 worth of bar soap. Assume that we said "$ 15 worth of bar soap" because soap cost $3 per bar and all three techniques produce 5 bars of soap ($15 = $3 per bar × 5 bars). So you know each technique produces 5 bars of soap.
a. What technique-will you want to use if the price of a bar of soap falls to $2.75 What if the price of a bar of soap rises to $4 To $5
b. How many bars of soap will you want to produce if the price of a bar of soap falls to $2.00
c. Suppose that the price of soap is again $3 per bar but that the prices of all four resources are now $1 per unit. Which is now the least-profitable technique
d. If the resource prices return to their original levels (the ones shown in the table) but a new technique is invented that can produce 3 bars of soap (yes, 3 bars, not 5 bar) using I unit of each of the four resources, will firms prefer the new technique
Reference Table 2.1