Use the Information Provided in Table 7 -Refer to Table 7

question 258

Multiple Choice

Use the information provided in Table 7.4 below to answer the question(s) that follow.
Table 7.4
Inputs Required to Produce a Product Using Alternative Technologies
$$\begin{array} { c c c } \hline \text { Technology } & \text { Units d Capital } & \begin{array} { l } \text { Number of } \\\text { Employees }\end{array} \\\hline \text { A } & 8 & 36 \\\hline \text { B } & 12 & 24 \\\hline \text { C } & 16 & 16 \\\hline \text { D } & 24 & 12 \\\hline\end{array}$$
-Refer to Table 7.4. If the hourly price of capital is $40 and the hourly wage rate is $10, which production technology should be selected?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Optimal Extraction Level

The point at which the marginal cost of extracting a resource (e.g., minerals, oil) equals the marginal revenue, ensuring the most efficient allocation of resources.

Nonrenewable Resource

A natural resource that cannot be replaced or replenished once it is used, such as oil, natural gas, and coal.

User Cost

The cost of using a capital asset, considering factors like depreciation, interest on investment, and maintenance costs.

Property Rights

Legal rights to possess, use, and dispose of assets including land, buildings, and intellectual property.