Firm a Plans to Produce 500 Units Per Day of Good

Short Answer

Firm A plans to produce 500 units per day of good X. The firm can choose either of the following two input combination t produce 500 units per day.
$\begin{array}{l|c|c|}\hline& \text { Process 1 } & \text { Process 2 } \\\hline labor&8 & 12 \\\hline capital&14 & 7 \\\hline\end{array}$
To obtain the services of labor and capital for a day, firm A must pay wages of $100 per unit of labor and $80 per unit of capital. For firm A, process ________ (1, 2) is economically efficient because the efficient process costs $___________ compared with $__________ for the inefficient process. Show your work here: