Firm A plans to produce 500 units per day of good X. The firm can choose either of the following two input combination t produce 500 units per day.
$\begin{array}{l|c|c|}
\hline& \text { Process 1 } & \text { Process 2 } \
\hline labor&8 & 12 \
\hline capital&14 & 7 \
\hline
\end{array}$
To obtain the services of labor and capital for a day, firm A must pay wages of $100 per unit of labor and $80 per unit of capital. For firm A, process ________ (1, 2) is economically efficient because the efficient process costs $___________ compared with $__________ for the inefficient process. Show your work here:

Question

Firm A plans to produce 500 units per day of good X. The firm can choose either of the following two input combination t produce 500 units per day.
 $\begin{array}{l|c|c|}
\hline& \text { Process 1 } & \text { Process 2 } \
\hline labor&8 & 12 \
\hline capital&14 & 7 \
\hline
\end{array}$ 
To obtain the services of labor and capital for a day, firm A must pay wages of $100 per unit of labor and $80 per unit of capital. For firm A, process ________ (1, 2) is economically efficient because the efficient process costs $___________ compared with $__________ for the inefficient process. Show your work here:

Quizplus · Accepted Answer

The Answer of Firm A plans to produce 500 units per day of good X. The firm can choose either of the following two input combination t produce 500 units per day.
 $\begin{array}{l|c|c|}
\hline& \text { Process 1 } & \text { Process 2 } \
\hline labor&8 & 12 \
\hline capital&14 & 7 \
\hline
\end{array}$ 
To obtain the services of labor and capital for a day, firm A must pay wages of $100 per unit of labor and $80 per unit of capital. For firm A, process ________ (1, 2) is economically efficient because the efficient process costs $___________ compared with $__________ for the inefficient process. Show your work here:

Firm a Plans to Produce 500 Units Per Day of Good