Author Question: Firm A can produce a unit of output with 10 hours of labor and 5 units of material. Firm B can ... (Read 120 times)

Davideckstein7 · **on:** Jun 29, 2018

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 the most technologically efficient? A) firm A only
B) firm B only
C) firm C only
D) Firms A and B could both be technologically efficient.

Question 2

The schedules in the table give the marginal social benefit and marginal social cost of a DVD. If the marginal cost of producing a DVD increases by 4, then the efficient number of DVDs is ________ a week.

A) 1
B) 2
C) 5
D) 4