A Firm Can Use 5 Workers and 10 Machines, 7

question 109

Multiple Choice

A firm can use 5 workers and 10 machines, 7 workers and 9 machines, or 8 workers and 9 machines to produce four cars. If each worker costs $200 and each machine is rented for $50, the economically efficient input combination is:

• A) 5 workers and 10 machines.
• B) 7 workers and 9 machines.
• C) 8 workers and 9 machines.
• D) 12 workers and 19 machines.

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Definitions:

Expense Of Business

Costs incurred in the operation of a business, including costs of goods sold, overhead, payroll, and other operating expenses.

Debt Ratio

The Debt Ratio is a financial metric that compares a company's total liabilities to its total assets, showing the proportion of a company's assets financed by debt.