The Following Question Are Based on the Following Table

question 67

Multiple Choice

The following question are based on the following table:

-A firm is able to purchase 1 unit of raw material for $2 and convert that unit into a finished product that sells for $25.Four production techniques are available,as shown in the table.If labor costs $1 per hour and machine time costs $3 per hour,the firm should

• A) use technique A.
• B) use technique B.
• C) use technique C.
• D) use technique D.
• E) not produce at all.

---

Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.

Value-Added Tax

A type of consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.

Production

The method of blending different tangible and intangible inputs (like designs and expertise) to create products for use.

Administrative Burden

A term that refers to the costs and regulatory obligations businesses face when complying with government rules and procedures.