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Consider the Following Table \quad \quad \quad  Six Methods of Production of Shirts for \text { Six Methods of Production of Shirts for }

question 11

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Consider the following table: \quad \quad \quad Six Methods of Production of Shirts for \text { Six Methods of Production of Shirts for }
\quad \quad \quad \quad the Simply Cotton Shirt Company \text { the Simply Cotton Shirt Company }
 Method  A  B  C  D  E  F  Units of Capital 101525405880 Units of Labour 805840251510\begin{array} { | l | l | l | l | l | l | l | } \hline \text { Method } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \\\hline \text { Units of Capital } & 10 & 15 & 25 & 40 & 58 & 80 \\\hline \text { Units of Labour } & 80 & 58 & 40 & 25 & 15 & 10 \\\hline\end{array} If the price of capital is $1 per unit and the price of labour is $2 per unit,the method that maximizes Simply Cotton's productive efficiency is:

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Definitions:

Capital Goods

Long-lasting tangible assets that businesses use in the production of goods and services, such as machinery, buildings, and equipment.

LDCs

Less Developed Countries, nations with a lower level of material wealth, industrialization, and socio-economic development.

Terms Of Trade

The ratio at which a country can trade its exports for imports from other countries.

Price Stability

An economic objective aiming to maintain a steady rate of inflation, allowing for predictable planning and investing.

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