-The table above shows techniques that can be used to produce 100 shirts. If the price of an hour of labor is $6 and the price of a unit of capital is $30, then the economically efficient technique is
A) W.
B) X.
C) Y.
D) Z.

Question

-The table above shows techniques that can be used to produce 100 shirts. If the price of an hour of labor is $6 and the price of a unit of capital is $30, then the economically efficient technique is
A) W. 
B) X. 
C) Y. 
D) Z.

Quizplus · Accepted Answer

The economically efficient technique minimizes the total cost of production. To determine this, calculate the total cost for each technique by multiplying the hours of labor and units of capital by their respective prices, and choose the one with the lowest total cost.

-The Table Above Shows Techniques That Can Be Used to Produce