Solved

Answer the Question on the Basis of the Following Information \quad

Question 35

Multiple Choice

Answer the question on the basis of the following information: Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below.Assume the prices of labor and capital are $2 and $3 respectively. \quad \quad \quad \quad  Production Techniques: \underline{\text { Production Techniques: }}
 Labor Capital142II33III25IV51\begin{array}{c}\begin{array}{lll}\\\text { Labor}\\\text { Capital} \end{array}\begin{array}{c}1\\\hline 4 \\2\end{array}\begin{array}{c}II \\\hline 3 \\3 \end{array}\begin{array}{c}III\\\hline2 \\5\end{array}\begin{array}{c} IV \\\hline 5 \\1 \end{array} \end{array}
Refer to the information.Which technique is economically most efficient in producing A?


A) I.
B) II.
C) III.
D) IV.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions