Economics Homework

Question 1

Refer to the information provided in the table below to answer the fol owing question: Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, what production technique should this firm use to produce 2 units of output? Show supportive work to explain your answer. Produce Using techniques Units of K Units of L _ A 8 8 1 unit of output B 4 12 _ A 14 12 2 units of output B 8 20 _ A 16 12 3 units of output B 12 22