5.. Alternative ways of making 100 shirts a day are in the table below: Method Labor (hours) Capital (machines) A 10 50 в 50 20 40 с 20 D 100 10 a. Which methods are technologically efficient? b. Which method is economically efficient if: (i) The wage rate is $1 an hour and the rental cost of a machine is $100 an hour? (ii) The wage rate is $5 an hour and the rental cost of a machine is $50 an hour? (iii) The wage rate is $50 an hour and the rental cost of a machine is $5 an hour?

5.. Alternative ways of making 100 shirts a day are in the table below: Method Labor (hours) Capital (machines) A 10 50 в 50 20 40 с 20 D 100 10 a. Which methods are technologically efficient? b. Which method is economically efficient if: (i) The wage rate is $1 an hour and the rental cost of a machine is $100 an hour? (ii) The wage rate is $5 an hour and the rental cost of a machine is $50 an hour? (iii) The wage rate is $50 an hour and the rental cost of a machine is $5 an hour?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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