A firm can use 50 workers and 10 machines, 70 workers and 9 machines, or 75 workers and 9 machines to produce 40 chairs. If each worker costs $20 and each machine is rented for $500, the economically efficient input combination is:
A) 50 workers and 10 machines.
B) 70 workers and 9 machines.
C) 75 workers and 9 machines.
D) 120 workers and 19 machines.

Question

Quizplus · Accepted Answer

The cost for 70 workers and 9 machines is $2,800, which is the lowest cost among the options provided.

A Firm Can Use 50 Workers and 10 Machines, 70