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

question 247

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. If the price of labor declines from $3 to $2 per unit, then what is the least
Costly way of producing Zenias?

• A) A
• B) B
• C) C
• D) D

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