Firm a Can Produce a Unit of Output with 10

question 79

Multiple Choice

Firm A can produce a unit of output with 10 hours of labor and 5 units of material. Firm B can produce a unit of output with 5 hours of labor and 10 units of material. Firm C can produce a unit of output with 10 hours of labor and 10 units of material. If the prices of labor and material are $10 per hour and $5 per unit, respectively, which of these firms is the most technologically efficient?

• A) firm A only
• B) firm B only
• C) firm C only
• D) Firms A and B could both be technologically efficient.

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Definitions:

Employer's Payroll Taxes

Taxes that employers are responsible for paying on behalf of their employees, including Social Security, Medicare, and unemployment taxes.

Payroll Register

A detailed document that records the earnings, deductions, and net pay for all employees for each pay period.

Gross Payroll

The total amount of money paid by an employer to its employees before deductions such as taxes, retirement contributions, and health insurance.

Federal Unemployment Tax Rate

A tax rate set by the federal government to fund unemployment compensation payments to workers who have lost their jobs.