4. Assume that a business rm nds that its prot is greatest when it produces $40 worth of product A. Suppose also that each of the three techniques shown in the following table will produce the desired output. L02.3 a. With the resource prices shown, which technique will the rm choose? Why? Will production using that technique result in prot or loss? What will be the amount of that prot or loss? Will the industry expand or contract? When will that expansion or contraction end? 1}. Assume now that a new technique. technique 4. is developed. It combines 2 units of labor, 2 of land, 6 of capital. and 3 of entrepreneurial ability. With the resources priced as shown in the table, will the rm adopt the new technique? Explain. 0. Suppose that an increase in the labor supply causes the price of labor to fall to $1.50 per unit, all other resource prices remaining unchanged. Which technique will the producer now choose? Explain. d. \"The market system causes the economy to conserve most in the use of resources that are particularly scarce in supply. Resources that are scarcest relative to the demand for them have the highest prices. As a result, producers use these resources as sparingly as is possible." Evaluate this statement. Does your answer to part 6, above, bear out this contention? Explain. Resource Units Required Price per Unit Resource of Resource Technique 1 Technique 2 Technique 3 La bor $3 5 2 3 La nd 4 2 4 2 Capital 2 4 5 Entrepreneurial 4 2 4 ability 2. Indicate whether each of the following statements applies to microeconomics or macroeconomics: LO1.3 a. The unemployment rate in the United States was 3.7 percent in December 2018. b. A U.S. software firm laid off 15 workers last month and transferred the work to India. c. An unexpected freeze in central Florida reduced the citrus crop and caused the price of oranges to rise. d. U.S. output, adjusted for inflation, increased by 2.3 percent in 2017. e. Last week Wells Fargo Bank lowered its interest rate on business loans by one-half of 1 percentage point. f. The consumer price index rose by 2.2 percent from November 2017 to November 2018.5. For each of the following situations involving marginal cost (MC) and marginal benefit (MB), indicate whether it would be best to produce more, fewer, or the current number of units. LO1.4 a. 3,000 units at which MC = $10 and MB = $13. b. 11 units at which MC = $4 and MB = $3. c. 43,277 units at which MC = $99 and MB = $99. d. 82 units at which MC