Question
If technology A is used, 2 units of capital(K) and 9 units of labor(L) are required. If technology B is used, 3 units of capital(K)
If technology A is used, 2 units of capital(K) and 9 units of labor(L) are required. If technology B is used, 3 units of capital(K) and 6 units of labor(L) are required. If technology C is used, 4 units of capital(K) and 4 units of labor(L) are required. If technology D is used, 6 units of capital(K) and 3 units of labor are required. If technology E is used, 10 units of capital(K) and 2 units of labor are required. If the price of one capital is 4 and the price of one labor is 1 then the optimal or best technology is
Select one:
a. technology E
b. technology C
c. technology A
d. technology B
e. technology D
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Essentials Of Applied Econometrics
Authors: Aaron D Smith, J Edward Taylor
1st Edition
0520288335, 9780520288331
