Suppose a ?rm can produce 70 units of a product, Zenia, by combining labor, land, capital, and entrepreneurial ability, as in the four alternative techniques shown in the table below. Assume further
That the ?rm can hire labor at $3 per unit, land at $3 per unit, capital at $6 per unit, and entrepreneurship
At $9 per unit.
Refer to the provided table. If the price of labor declines from $3 to $2 per unit, then what is the least
Costly way of producing Zenias?
A) A
B) B
C) C
D) D
Correct Answer:
Verified
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