Answer the question based on the following information: Suppose 10 units of product X can be produced by employing just labor and capital in the three ways shown below. Assume the prices of labor and capital are as shown. Production Production Production Technique 1 Technique 2 Technique 3 Resource price $ 2 Labor 4 3 Capital $ 3 2 3 5 Which technique is the most economically efficient?

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter3: Demand, Supply, And The Market Process
Section: Chapter Questions
Problem 10CQ
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  • Technique 1 with total costs of $22
  •  
    Technique 1 with total costs of $16
  •  
    Technique 2 with total costs of $17
  •  
    Technique 3 with total costs of $21
Answer the question based on the following information: Suppose 10 units of product X can be produced by employing just labor and capital in the three ways
shown below. Assume the prices of labor and capital are as shown.
Resource
Production Production Production
price
Technique 1 Technique 2 Technique 3
Labor
$ 2
4
3
Сapital
$ 3
2
3
Which technique is the most economically efficient?
Transcribed Image Text:Answer the question based on the following information: Suppose 10 units of product X can be produced by employing just labor and capital in the three ways shown below. Assume the prices of labor and capital are as shown. Resource Production Production Production price Technique 1 Technique 2 Technique 3 Labor $ 2 4 3 Сapital $ 3 2 3 Which technique is the most economically efficient?
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