The Table Gives Marginal Product Data for Resources a and B

question 73

Multiple Choice

The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Assuming the prices of resources a and b are $5 and $8 respectively, what is the least costly combination of resources for the firm to employ in producing 192 units of output?

• A)2 of a and 6 of b
• B)6 of a and 2 of b
• C)4 of a and 3 of b
• D)3 of a and 4 of b

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Definitions:

DuPont Cellophane

A branded version of cellophane, originally developed and marketed by the DuPont company, used for packaging and other applications.

Sherman Act

A landmark U.S. legislation passed in 1890 aimed at promoting competition among businesses by prohibiting monopolies and restrictive trade practices.

Standard Oil Case

A landmark U.S. legal case from 1911 that resulted in the breakup of the Standard Oil Company due to its monopolistic practices.

DuPont Cellophane

A thin, transparent sheet made of regenerated cellulose, historically developed and branded by DuPont.