# Table of Labor and Capital Requirements for Producing 100 SweatersThe following table presents the different techniques for producing 100 sweaters, along with their associated labor and capital requirements:| **Technique** | **Labor (hours)** | **Capital (machines)** ||---------------|--------------------|------------------------|| **A** | 10 | 35 || **B** | 25 | 25 || **C** | 10 | 60 || **D** | 30 | 20 |## Economically Efficient Production TechniqueUsing the data provided in the table above, and considering the price of an hour of labor is $20 and the price per unit of capital (machine) is $10, we can determine the most economically efficient technique for producing 100 sweaters. ### Calculation Details:- **Technique A**: - Labor cost: 10 hours * $20/hour = $200 - Capital cost: 35 machines * $10/machine = $350 - Total cost: $200 + $350 = $550- **Technique B**: - Labor cost: 25 hours * $20/hour = $500 - Capital cost: 25 machines * $10/machine = $250 - Total cost: $500 + $250 = $750- **Technique C**: - Labor cost: 10 hours * $20/hour = $200 - Capital cost: 60 machines * $10/machine = $600 - Total cost: $200 + $600 = $800- **Technique D**: - Labor cost: 30 hours * $20/hour = $600 - Capital cost: 20 machines * $10/machine = $200 - Total cost: $600 + $200 = $800After evaluating the total costs, it is clear that **Technique A** is the most economically efficient, with the lowest total production cost of $550.## ConclusionBased on the calculations, **Technique A** is recommended as the most cost-effective method for producing 100 sweaters. Ensure to consider this technique to optimize production costs effectively.

Labor and capital are the variable inputs that are used in production of good. The table shows the…

Labor Capital (machines) Technique (hours) A 10 35 B 25 25 C 10 60 D 30 20 sing the data in the above table, if the price of an hour of labor is $20 and the price of a unit conomically efficient technique for producing 100 sweaters is D. A. B

Labor Capital (machines) Technique (hours) A 10 35 B 25 25 C 10 60 D 30 20 sing the data in the above table, if the price of an hour of labor is $20 and the price of a unit conomically efficient technique for producing 100 sweaters is D. A. B

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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