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Table 7A-1
-For Table 7A-1, if the price of labor = $3 and the price of land = $4, what is the least-cost factor combination of production?
A)A
B)B
C)C
D)D
E)Both B and C, which are the same.

Question

Use the following to answer questions :
Table 7A-1 
-For Table 7A-1, if the price of labor = $3 and the price of land = $4, what is the least-cost factor combination of production?
A)A 
B)B 
C)C 
D)D 
E)Both B and C, which are the same.

Quizplus · Accepted Answer

The least-cost factor combination of production is determined by comparing the total cost of each combination given the prices of labor and land. Without the specific details of Table 7A-1, the correct answer cannot be directly calculated here. However, when an option indicates that two combinations (B and C) are the same and are both considered the least-cost, it suggests that both of these combinations result in the lowest total cost of production given the prices of labor ($3) and land ($4). This is a common outcome in problems involving the choice of production inputs, where multiple combinations of inputs can result in the same minimum cost under certain conditions.

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