De¢ne Farrell E⁄ciency and distinguish between technical e⁄ciency and cost (or price) e⁄ciency. Using the following data (input requirements per 1,00 tonnes of product) construct a best practice isoquant and estimate the degree of productive ine⁄ciency of the least e⁄cient company and identify the most e⁄cient company?

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Company Units of labour Units of capital Company Units of labour Units of capital 123456 9 360 7 2 305 7 280 8 8 360 10 240 9 11 400 10 245 10 4 430 65 240 11 12 200 330 12 9 183