Answer the question based on 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 $4 and $3, respectively.

Question

Production Techniques
I II III IV
Labor 4 3 2 5
Capital 2 3 5 1

Which technique is economically most efficient in producing A?

A.III
B.II
C.I
D.IV

Answer 1

The I II III and IV go above 4,3,2,5

Answer 2

compare these:
I. 4*4 + 3*2=
II 4*3 + 3*3=
III 4*2 + 3*5=
IV 4*5 + 1*3=

Answer 3

Answer the question based on 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 $4 and $3, respectively.
Production Techniques
I II III IV
Labor 4 3 2 5
Capital 2 3 5 1

Which technique is economically most efficient in producing A?
4*4 3*4 2*4 5*4 = 16 12 8 20
2*3 3*3 5*3 1*3 = 6 9 15 3
Now add the columns (up and down)
22 21 23 23
Now the least costly is the one with the lowest price. 21 is the lowest number/price. The cheapest system is the most efficient.
A.III
B.II <--
C.I
D.IV

Answer 4

a