Select one: O a. Given the same wage level, if the price coal decreases from £20 to £5, a firm would receive an innovation rent by adopting Technology A before its competitors O b. Technology A is less costly than Technology B when the wage is £10 and the price of coal is £20 O c. Technology A is the most efficient when the wage is £10 and the price of coal is £5 O d. Technologies B and D are the most efficient when the wage is £10 and the price of coal is £20

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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The diagram below shows different technologies (A-D) which produces 100 meters of cloth. The solid lines are the isocosts when the wage is £10 and the price of coal is £5. The dashed line is the
isocost when the wage is £10 and the price of coal is £20. Which statement incorrectly explains the diagram?
Tonnes of coal
10
9
8
3
2
1
Select one:
N
G
A
Cost = £40
1
Cost = £50
2
3
F
D
M
Cost = £80
4
5 6 7
Number of workers
H
8
9 10
O a. Given the same wage level, if the price coal decreases from £20 to £5, a firm would receive an innovation rent by adopting Technology A before its competitors
Technology A is less costly than Technology B when the wage is £10 and the price of coal is £20
O b.
O c. Technology A is the most efficient when the wage is £10 and the price of coal is £5
O d. Technologies B and D are the most efficient when the wage is £10 and the price of coal is £20
Transcribed Image Text:The diagram below shows different technologies (A-D) which produces 100 meters of cloth. The solid lines are the isocosts when the wage is £10 and the price of coal is £5. The dashed line is the isocost when the wage is £10 and the price of coal is £20. Which statement incorrectly explains the diagram? Tonnes of coal 10 9 8 3 2 1 Select one: N G A Cost = £40 1 Cost = £50 2 3 F D M Cost = £80 4 5 6 7 Number of workers H 8 9 10 O a. Given the same wage level, if the price coal decreases from £20 to £5, a firm would receive an innovation rent by adopting Technology A before its competitors Technology A is less costly than Technology B when the wage is £10 and the price of coal is £20 O b. O c. Technology A is the most efficient when the wage is £10 and the price of coal is £5 O d. Technologies B and D are the most efficient when the wage is £10 and the price of coal is £20
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