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Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of
Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of labor and capital and $2 and $3, respectively.
Production Techniques
1 2 3 4
Labor 4 3 2 5
Capital 2 3 5 1
If the price of product A is $1.50, and the firm is producing efficiently the firm will realize
A. Economic loss of $13
B. Economic profit of $2
C. Economic profit of 45
D. Economic profit of $30
E. Economic profit of $32
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