To Produce a Unit of Output, Alphaworks Uses 10 Hours

Multiple Choice

To produce a unit of output, Alphaworks uses 10 hours of labour and 5 kilograms of material. Betaworks uses 5 hours of labour and 10 kilograms of material, and Gammaworks uses 10 hours of labour and 10 kilograms of material. If labour costs $10 per hour and material costs $5 per kilogram, which firm is economically efficient?

A) Alphaworks only
B) Betaworks only
C) Gammaworks only
D) Alphaworks and Betaworks
E) Alphaworks and Gammaworks