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To Produce a Unit of Output, Alphaworks Uses 10 Hours

question 93

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To produce a unit of output, Alphaworks uses 10 hours of labour and 5 kilograms of material. Betaworks uses 5 hours of labour and 10 kilograms of material, and Gammaworks uses 10 hours of labour and 10 kilograms of material. If labour costs $10 per hour and material costs $5 per kilogram, which firm is economically efficient?


Definitions:

Extensor Surfaces

The outer or posterior surfaces of limbs, where the extensor muscles are located, responsible for straightening joints.

Anaphylactic Reaction

A severe, potentially life-threatening allergic response that requires immediate medical intervention.

Epinephrine

A hormone and medication, also known as adrenaline, used to treat allergic reactions, cardiac arrest, and other conditions requiring immediate action.

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