Use the information provided in Table 7.2 below to answer the question(s) that follow.
Table 7.2Inputs Required to Produce a Product Using Alternative Technologies
Refer to Table 7.2. If the hourly price of capital is $30 and the hourly wage rate is $5, which production technology should be selected?
A. A
B. B
C. C
D. D
Answer: C
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What is "monopolistic" about monopolistic competition?
What will be an ideal response?
A strikebreaker is
A) a temporary worker hired by a company to replace a union member who is striking. B) when the President imposes a cooling-off period. C) someone who engages in featherbedding. D) a secondary boycott.
The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, the equilibrium output will be
A) 2,000 tons. B) 3,000 tons. C) 4,000 tons. D) 5,000 tons.
Refer to Table 2-7. The Shellfish Shack produces only shrimp and oysters. The table above shows the maximum possible output combinations of the two types of shellfish using all resources and currently available technology
a. Suppose The Shellfish Shack is currently producing at point E. What is the opportunity cost of producing an additional 11,000 pounds of oysters? b. Suppose The Shellfish Shack is currently producing at point E. What happens to the opportunity cost of producing more and more shrimp? Does it increase, decrease, or remain constant? Explain your answer. c. Suppose The Shellfish Shack is currently producing at point B. What happens to the opportunity cost of producing more and more oysters? Does it increase, decrease, or remain constant? Explain your answer. d. Suppose The Shellfish Shack is plagued by a disease which destroys oyster beds but not shrimp habitats. What would happen to its PPF?