Consider the following fixed proportions technologies: Technology A uses 3 units of labour and 6 units of capital to produce 10 units of output. Technology B uses 8 units of labour and 4 units of capital to produce 10 units of output. The firm has 6 units of labour and 8 units of capital. lt can use either of the technologies, or combine the two in its production. The maximum amount of output the firm can produce is O fewer than 10 units O between 10 and 15 units O between 15 and 20 units O between 20 and 25 units O greater than 25 units
Consider the following fixed proportions technologies: Technology A uses 3 units of labour and 6 units of capital to produce 10 units of output. Technology B uses 8 units of labour and 4 units of capital to produce 10 units of output. The firm has 6 units of labour and 8 units of capital. lt can use either of the technologies, or combine the two in its production. The maximum amount of output the firm can produce is O fewer than 10 units O between 10 and 15 units O between 15 and 20 units O between 20 and 25 units O greater than 25 units
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider the following fixed proportions technologies:
Technology A uses 3 units of labour and 6 units of capital to produce 10 units of output.
Technology B uses 8 units of labour and 4 units of capital to produce 10 units of output.
The firm has 6 units of labour and 8 units of capital. lt can use either of the technologies, or combine the two in its production. The maximum amount of output the firm can produce is
O fewer than 10 units
O between 10 and 15 units
O between 15 and 20 units
O between 20 and 25 units
O greater than 25 units
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