Answer the question using the following data,which show all available techniques for producing 20 units of a particular commodity: $AbilityPrices‾$4332#1‾2153#2‾4221#3‾2431#4‾4114#5‾4321\begin{array}{c}\quad\quad\quad\quad\quad\quad\quad\text {Resource}\quad\quad\quad\quad\quad\text { Possible Production Techniques }\\\begin{array}{lll}\\\underline{\text {Resource}}\\ \text {Land}\\ \text {Labor}\\ \text {Capital}\\ \text {Entrepreneurial Ability}\end{array}\begin{array}{c}\\\underline{\text {Prices}}\\\$ 4\\3\\3\\2\end{array}\begin{array}{c}\\\quad\quad\quad\quad\quad\quad\quad\quad\quad\underline{\# 1} \\ \quad\quad\quad\quad\quad\quad\quad\quad\quad2 \\\quad\quad\quad\quad\quad\quad\quad\quad\quad1 \\\quad\quad\quad\quad\quad\quad\quad\quad\quad5 \\\quad\quad\quad\quad\quad\quad\quad\quad\quad3\end{array}\begin{array}{c}\\\underline{\# 2 }\\ 4 \\2 \\2 \\1\end{array}\begin{array}{c}\\\underline{\#3 }\\ 2 \\4 \\3 \\1\end{array}\begin{array}{c}\\\underline{\# 4 }\\ 4 \\1 \\1 \\4\end{array}\begin{array}{c}\\\underline{\# 5 }\\ 4 \\3 \\2 \\1\end{array}\end{array}$
Refer to the data.If a new production technique is developed that enables a firm to produce 20 units of output with 3 units of land,3 of labor,1 of capital,and 2 of entrepreneurial ability,this technique would:

A) not be adopted because,although it reduces production costs,it does not increase profit.
B) be adopted because it would lower production costs and increase economic profit.
C) not be adopted because it entails higher production costs than other available techniques.
D) be adopted,even though economic profits would be reduced slightly.

Question

Answer the question using the following data,which show all available techniques for producing 20 units of a particular commodity:

AbilityPrices‾$4332#1‾2153#2‾4221#3‾2431#4‾4114#5‾4321\begin{array}{c}\quad\quad\quad\quad\quad\quad\quad\text {Resource}\quad\quad\quad\quad\quad\text { Possible Production Techniques }\\\begin{array}{lll}\\\underline{\text {Resource}}\\ \text {Land}\\ \text {Labor}\\ \text {Capital}\\ \text {Entrepreneurial Ability}\end{array}\begin{array}{c}\\\underline{\text {Prices}}\\\$ 4\\3\\3\\2\end{array}\begin{array}{c}\\\quad\quad\quad\quad\quad\quad\quad\quad\quad\underline{\# 1} \\ \quad\quad\quad\quad\quad\quad\quad\quad\quad2 \\\quad\quad\quad\quad\quad\quad\quad\quad\quad1 \\\quad\quad\quad\quad\quad\quad\quad\quad\quad5 \\\quad\quad\quad\quad\quad\quad\quad\quad\quad3\end{array}\begin{array}{c}\\\underline{\# 2 }\\ 4 \\2 \\2 \\1\end{array}\begin{array}{c}\\\underline{\#3 }\\ 2 \\4 \\3 \\1\end{array}\begin{array}{c}\\\underline{\# 4 }\\ 4 \\1 \\1 \\4\end{array}\begin{array}{c}\\\underline{\# 5 }\\ 4 \\3 \\2 \\1\end{array}\end{array}

Refer to the data.If a new production technique is developed that enables a firm to produce 20 units of output with 3 units of land,3 of labor,1 of capital,and 2 of entrepreneurial ability,this technique would:

A) not be adopted because,although it reduces production costs,it does not increase profit.
B) be adopted because it would lower production costs and increase economic profit.
C) not be adopted because it entails higher production costs than other available techniques.
D) be adopted,even though economic profits would be reduced slightly.

Askgram User · Accepted Answer

Final Answer : undefined

Definitions

Learning Objectives

Learning Objectives

Related questions