Techniques for making 100 pizzas

-Labor costs $20 per worker and capital costs $100 per unit. Then, according to the above table, which of the following options for pizza production is economically efficient?
A) Option 1
B) Option 3
C) Option 4
D) Both options 1 and 3 are economically efficient.

Question

Techniques for making 100 pizzas
 
-Labor costs $20 per worker and capital costs $100 per unit. Then, according to the above table, which of the following options for pizza production is economically efficient?
A) Option 1 
B) Option 3 
C) Option 4 
D) Both options 1 and 3 are economically efficient.

Quizplus · Accepted Answer

Economic efficiency is achieved when the cost of production is minimized for a given level of output. Without the table, we assume options 1 and 3 have the lowest cost combination of labor and capital for the desired output level.

Techniques for Making 100 Pizzas