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The table below contains information on three techniques for producing $15 worth of bar soap. Assume that we specified $22.50 worth of bar soap; because

The table below contains information on three techniques for producing $15 worth of bar soap. Assume that we specified "$22.50 worth of bar soap"; because soap costs $4.50 per bar and all three techniques produce 5 bars of soap ($22.50 = $4.50 per bar 5 bars). So you know each technique produces 5 bars of soap.

Units of Resource
Resource Price per Unit Technique 1 Units Technique 1 Cost Technique 2 Units Technique 2 Cost Technique 3 Units Technique 3 Cost
Labor $2 4 $8 2 $4 1 $2
Land 1 1 1 3 3 4 4
Capital 3 1 3 1 3 2 6
Entrepreneurial ability 3 1 3 1 3 1 3
Total cost of $15 worth of bar soap $15 $13 $15

If the resource prices return to their original levels (the ones shown in the table), but a new technique is invented that can produce 2 bars of soap using 1 unit of each of the four resources, will firms prefer the new technique?

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