-FasterChip, Inc. is considering five alternative techniques for assembling personal computers. The table shows the amounts of labor and capital required by each of these techniques to make 10 computers a day. Labor costs $15 an hour and capital costs $100 a unit.
a) Which techniques are technologically efficient and which are not? Explain your answer.
b) Which technique is economically efficient? Explain.
c) If FasterChip uses its plant in Mexico, it can lower the labor cost to $10 an hour. Which technique will the company use in Mexico? Explain.
Definitions:
Approach-avoidance
A psychological conflict that occurs when a person is simultaneously drawn to and repelled by the same goal or object.
Avoidance-avoidance
A psychological conflict that occurs when a person must choose between two negative stimuli.
Approach-approach
A type of conflict situation where an individual must choose between two attractive goals, leading to a decision-making dilemma.
Multiple approach-avoidance
A conflict occurring when a person is faced with a decision that has both attractive and unappealing aspects.
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