Suppose a ?Rm Can Produce 70 Units of a Product $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Techniques$

question 43

Multiple Choice

Suppose a ?rm can produce 70 units of a product, Zenia, by combining labor, land, capital, and entrepreneurial ability, as in the four alternative techniques shown in the table below. Assume further
That the ?rm can hire labor at $3 per unit, land at $3 per unit, capital at $6 per unit, and entrepreneurship
At $9 per unit.
$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Techniques$
$\begin{array} { | l | c | c | c | c | } \hline & A & B & C & D \\\hline \text { Labor } & 4 & 10 & 6 & 5 \\\hline \text { Land } & 5 & 3 & 3 & 3 \\\hline \text { Capital } & 5 & 2 & 4 & 4 \\\hline \text { Entrepreneurship } & 1 & 1 & 1 & 1 \\\hline\end{array}$ Refer to the provided table, and suppose that the ?rm uses production technique D. If each of the 70
Units of Zenia that are produced sells for $1 apiece, then how much will be the total pro?ts of the ?rm
From 70 units of Zenia?

• A) $70
• B) $57
• C) $13
• D) $83

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Definitions:

Supermarkets

Large retail market places that sell food and household merchandise.

Customers

Individuals or businesses that purchase goods or services from another entity, providing the revenue stream for the business.

Prejudicial Hiring Practices

Employment practices that unfairly discriminate against candidates based on non-job-related characteristics.

Census

An official count or survey of a population, typically recording various details of individuals, such as age, sex, occupation, and nationality.