Techniques for making 100 automobiles

-The table above shows three production methods to produce 100 automobiles per day. If the price of labor is $20 per unit and the price of capital is $100 per unit, which of the three methods is economically efficient?
A) Method A only
B) Method B only
C) Method C only
D) All three methods are economically efficient.

Question

Techniques for making 100 automobiles
 
-The table above shows three production methods to produce 100 automobiles per day. If the price of labor is $20 per unit and the price of capital is $100 per unit, which of the three methods is economically efficient?
A) Method A only 
B) Method B only 
C) Method C only 
D) All three methods are economically efficient.

Quizplus · Accepted Answer

Method C is economically efficient because it uses the least cost combination of labor and capital to produce 100 automobiles per day, given the prices of labor and capital.

Techniques for Making 100 Automobiles