Question
If technology A is used, 2 units of capital(K) and 10 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 10 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 5 and the price of one labor is 1 then the optimal or best technology is
Select one:
a. technology C
b. technology D
c. technology E
d. technology B
e. technology A
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Mostly Harmless Econometrics An Empiricist's Companion
Authors: J D Angrist, Joshua D Angrist
1st Edition
0691120358, 9780691120355
