Techniques That Produce 100 Sweaters

question 229

Multiple Choice

Techniques that produce 100 sweaters

-Using the data in the above table, if the price of an hour of labor is $20 and the price of a unit of capital is $10, then the most economically efficient technique for producing 100 sweaters is

• A) A.
• B) B.
• C) C.
• D) D.

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Definitions:

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full adjustment to changes.

Making a Loss

Making a loss occurs when a business's total expenses exceed its total revenues during a specific period, indicating that the business is not financially profitable.

Minimize Losses

Strategies or measures taken to reduce the extent of financial loss or to prevent future losses.

Total Cost

Total cost is the entire expense associated with the production of a set of goods or services, including both fixed and variable costs.