[Solved] Refer to the Information Provided in Table 8

Question 28
Multiple Choice

Refer to the information provided in Table 8.1 below to answer the question(s) that follow.
Table 8.1 img
-Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, what production technique should this firm use to produce 2 units of output?

A) production technique A
B) production technique B
C) The firm is indifferent between production technique A and production technique B.
D) It is impossible to determine if the firm should select production technique A or B because total fixed costs are not given.

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