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 $$\quad $$\underline{\text { Production Techniques: }}$
$\begin{array}{c}
\begin{array}{lll}
\
\text { Labor}\
\text { Capital}
\end{array}
\begin{array}{c}
1\
\hline 4 \
2
\end{array}
\begin{array}{c}
II \
\hline 3 \
3
\end{array}
\begin{array}{c}
III\
\hline2 \
5
\end{array}
\begin{array}{c}
IV \
\hline 5 \
1
\end{array}
\end{array}$
Refer to the information.Which technique is economically most efficient in producing A?
A) I.
B) II.
C) III.
D) IV.

Question

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 $$\quad $$\underline{\text { Production Techniques: }}$ 
$\begin{array}{c}
\begin{array}{lll}
\
\text {  Labor}\
\text {  Capital} 
\end{array}
\begin{array}{c}
1\
\hline 4 \
2
\end{array}
\begin{array}{c}
II  \
\hline 3 \
3 
\end{array}
\begin{array}{c}
III\
\hline2 \
5
\end{array}
\begin{array}{c}
 IV \
\hline 5 \
1 
\end{array} 
\end{array}$
 Refer to the information.Which technique is economically most efficient in producing A?
A) I.
B) II.
C) III.
D) IV.

Quizplus · Accepted Answer

The cost of production for each technique can be calculated by multiplying the quantity of labor and capital by their respective prices ($2 for labor and $3 for capital). Technique IV has the lowest total cost: $5 \times 2 + 1 \times 3 = 13$, making it the most economically efficient.

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

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