Assume that a firm finds that its profits will be maximized (or losses minimized) when it produces $30 worth of product X.Each of these techniques shown in the following table will produce exactly $30 worth of X. 
(a) Which method is most efficient? Why?
(b) Given the above prices, will the firm adopt a new method, which involves 10 units of land, 3 of labour, 2 of capital, and 2 of entrepreneurial ability?
(c) Suppose the price of capital falls to $1 without any other prices changing.Which of the methods will the firm now choose? Why?
Definitions:
Inventory-Management System
A tool or software used by businesses to track stock levels, orders, sales, and deliveries to ensure the efficient management of inventory.
Vendor-Managed Inventory System
A supply chain practice where the supplier is responsible for maintaining the inventory levels of their products at the customer's premises.
Inventory Supply System
An organizational scheme designed to monitor and manage the goods and materials a business holds in stock.
Q1: What are the key economic concepts that
Q9: The entire short- run production function shifts
Q23: Why does specialization require a convenient means
Q52: According to the application, China's political institution
Q56: Based on growth accounting, which of the
Q88: In the short run, higher taxes will
Q94: Goods and services with custom prices have
Q142: Describe how new growth theory explains the
Q167: According to the application, a recession can
Q180: Refer to Figure 9.3. Suppose the economy