Answer the Question on the Basis of the Following Information $\quad$

question 35

Multiple Choice

Answer the question on the basis of the following information: Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below.Assume the prices of labor and capital are $2 and $3 respectively. $\quad$$\quad$$\quad$$\quad$$\underline{\text { Production Techniques: }}$
$\begin{array}{c}\begin{array}{lll}\\\text { Labor}\\\text { Capital} \end{array}\begin{array}{c}1\\\hline 4 \\2\end{array}\begin{array}{c}II \\\hline 3 \\3 \end{array}\begin{array}{c}III\\\hline2 \\5\end{array}\begin{array}{c} IV \\\hline 5 \\1 \end{array} \end{array}$
Refer to the information.Which technique is economically most efficient in producing A?

• A) I.
• B) II.
• C) III.
• D) IV.

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