4. Techniques of Production
Resource Resource Prices
Land $4
Labor $2
Capital $5
Entrepreneurial Ability $3
Possible ProductionTechniques
I II III IV
4 6 8 9
6 7 9 9
5 4 3 2
1 1 1 2
a. Which technique is the most efficient?
b. If the most efficient technique is used and the product produced is sold for $70, what will be the economic profit or loss?