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

question 107

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. Which technique is the most economically e?cient way of producing Zenia?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Articles of Confederation

The first governing document of the United States, created before the Constitution, which provided a loose federation of the states with limited central government power.

Ratified

The process by which a proposed treaty or agreement is officially approved and adopted by the necessary parties or institutions.

States

Distinct territorial and political entities within a federal system, each with its own government and a degree of autonomy.

Government-less State

A hypothetical or theoretical situation where society operates without a formal government, often associated with anarchism or extreme libertarian views.