Alternative ways of laundering 100 shirts are in the table.

a. Which methods are technologically efficient?
b. Which method is economically efficient if the hourly wage rate and the implicit rental rate of capital are as follows:
(i) Wage rate $1, rental rate $100?
(ii) Wage rate $5, rental rate $50?
(iii) Wage rate $50, rental rate $5?

Transcribed Image Text:

Labor hours) Capital (machines) Method 2 50