Suppose that widgets can be produced using two different production techniques, A and B. The following table provides the total input requirements for each of five different total output levels: (Photo) Assuming that the price of labor (PL) is RO 2 and the price of capital (PK) is RO 3, calculate the total cost of production for each of the five levels of output using the optimal (least cost) technology at each level. How many labor hours (units of labor) would be employed at each level of output? How many machine hours (units of capital)? (Graph the total cost of production as a function of output. (put cost on the Y-axis). Which technology is the cheapest at all levels of output. Select one: a. None of the other three answers b. Technology B c. Neither A Nor B d. Technology A
Suppose that widgets can be produced using two different production techniques, A and B. The following table provides the total input requirements for each of five different total output levels:
(Photo)
Assuming that the price of labor (PL) is RO 2 and the price of capital (PK) is RO 3, calculate the total cost of production for each of the five levels of output using the optimal (least cost) technology at each level. How many labor hours (units of labor) would be employed at each level of output? How many machine hours (units of capital)? (Graph the total cost of production as a function of output. (put cost on the Y-axis).
Which technology is the cheapest at all levels of output.
Select one:
a. None of the other three answers
b. Technology B
c. Neither A Nor B
d. Technology A
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