3 Alternative ways of laundering 100 shirts are:

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:
(i) Wage rate €1, rental rate €100?
(ii) Wage rate €5, rental rate €50?
(iii) Wage rate €50, rental rate €5?

Transcribed Image Text:

Method Labour (hours) A 1 Capital (machines) 10 B 5 8 C D 280 20 4 50 1