Firm a Can Produce a Unit of Output with 10

question 176

Multiple Choice

Firm A can produce a unit of output with 10 hours of labor and 5 units of material. Firm B can produce a unit of output with 5 hours of labor and 10 units of material. Firm C can produce a unit of output with 10 hours of labor and 10 units of material. If the prices of labor and material are $10 per hour and $5 per unit, respectively, which of these firms is economically efficient?

• A) firm A only
• B) firm B only
• C) firm C only
• D) Firms A and B could both be economically efficient.

---

Definitions:

Symbolic Action

A conception of leadership that focuses on the ways the leader is able to frame and define reality for others. Leadership is conceived as a process of interaction rather than a thing.

Prescribed Behavior

Actions or conduct mandated or expected by societal, organizational, or specific situational norms.

Psychological Understanding

The ability to comprehend and interpret the mental and emotional states of oneself and others.

Leadership Approach

Strategies or methodologies applied by individuals or organizations to guide, direct, influence, or control groups or individuals.