Use the following to answer question:
Table 15.2
-(Table 15.2) Which of the following input mixes provides an efficient allocation of labor and capital between the two industries?

Question

Use the following to answer question:
Table 15.2 
-(Table 15.2) Which of the following input mixes provides an efficient allocation of labor and capital between the two industries?

Quizplus · Accepted Answer

An efficient allocation of labor and capital occurs when the input mix maximizes output or minimizes cost for both industries, typically represented by a point on the production possibility frontier or where marginal rates of technical substitution are equal.

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