Refer to the Information Provided in Table 8 -Refer to Table 8

question 191

Multiple Choice

Refer to the information provided in Table 8.4 below to answer the question(s) that follow.
Table 8.4
$$\begin{array} { c c c c } \hline \text { Produce } & \text { Using Techniques } & \text { Units of Variable K } & \text { Inputs L } \\\hline 1 \text { unit of output } & \text { A } & 4 & 4 \\\hline & \text { B } & 2 & 6 \\\hline 2 \text { units of output } & & & \\\hline & \text { A } & 7 & 6 \\\hline& \text { B } & 4 & 10 \\\hline 3 \text { units of output } &\text { A } &8 & 6 \\\hline &\text { B } & 6& 11 \\\hline\end{array}$$
-Refer to Table 8.4. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, the firm will use production technique ________ to produce ________ of output.

• A) A; all three units
• B) B; all three units
• C) B; the first two units of output and production technique A to produce the third unit
• D) A; the first unit and production technique B to produce the second and third units

---

Definitions:

Selection Bias

A distortion in the analysis resulting from the method of collection of data, where the sample is not representative of the population being studied.

Experimental Groups

Groups in an experiment that receive the treatment or intervention being tested.

External Validity

The extent to which the results of a study can be generalized to other situations and to other people.

Generalize

The process of applying the findings from a study to broader contexts, indicating the extent to which the results are applicable to other settings, populations, or times.