The table above shows three production methods to produce 100 automobiles per day. If the price of labor is $20 per unit and the price of capital is $100 per unit, which of the three methods is economically efficient?
A) Method A only
B) Method B only
C) Method C only
D) All three methods are economically efficient.
C
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When the pricing of one product produced by a firm adversely affects the revenue earned by another product of the same firm, the second product has been
A) cannibalized. B) tied. C) bundled. D) sacrificed.
Classical macroeconomists assert that "saving" is the same as "not spending at all"
Indicate whether the statement is true or false
Which statement is true?
A. All monopolies are large firms. B. The monopolist produces a product similar to its competitors. C. There is no such thing as a natural monopoly. D. There are no close substitutes for a monopolist's product.
Supply-side tax cuts designed to increase investment spending are attractive in theory, but in practice
A. the effect is the opposite of what theory suggests. B. are less useful, because they take a long time to increase the capital stock. C. they have no effect on the capital stock in the short or long run. D. are powerful in the short run as capital stock rapidly increases, but the effect tapers off in the long run.