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A Firm Can Use 5 Workers and 10 Machines, 7

Question 109

Multiple Choice

A firm can use 5 workers and 10 machines, 7 workers and 9 machines, or 8 workers and 9 machines to produce four cars. If each worker costs $200 and each machine is rented for $50, the economically efficient input combination is:


A) 5 workers and 10 machines.
B) 7 workers and 9 machines.
C) 8 workers and 9 machines.
D) 12 workers and 19 machines.

Correct Answer:

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