Return to the problem explained in Table 7.13 and Table 7.14. If the cost of labor remains
Question:
Return to the problem explained in Table 7.13 and Table 7.14. If the cost of labor remains at $40, but the cost of a machine decreases to $50, what would be the total cost of each method of production? Which method should the firm use, and why?
Table 7.13
Table 7.14
Transcribed Image Text:
Production technology 1 Production technology 2 Production technology 3 10 workers 7 workers 3 workers 2 machines 4 machines 7 machines
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