Answer the question based on the following information: 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 are $4 and $3, respectively.

Production Techniques
I II III IV
Labor 4 3 2 5
Capital 2 3 5 1

Which technique is economically most efficient in producing A?

A.III
B.II
C.I
D.IV

The I II III and IV go above 4,3,2,5

compare these:

I. 4*4 + 3*2=
II 4*3 + 3*3=
III 4*2 + 3*5=
IV 4*5 + 1*3=

Answer the question based on the following information: 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 are $4 and $3, respectively.

Production Techniques
I II III IV
Labor 4 3 2 5
Capital 2 3 5 1

Which technique is economically most efficient in producing A?
4*4 3*4 2*4 5*4 = 16 12 8 20
2*3 3*3 5*3 1*3 = 6 9 15 3
Now add the columns (up and down)
22 21 23 23
Now the least costly is the one with the lowest price. 21 is the lowest number/price. The cheapest system is the most efficient.
A.III
B.II <--
C.I
D.IV

a

To determine the economically most efficient technique for producing product A, we need to calculate the cost of each technique using the given prices for labor and capital.

Technique I:
Labor cost = 4 * $4 = $16
Capital cost = 2 * $3 = $6
Total cost = $16 + $6 = $22

Technique II:
Labor cost = 3 * $4 = $12
Capital cost = 3 * $3 = $9
Total cost = $12 + $9 = $21

Technique III:
Labor cost = 2 * $4 = $8
Capital cost = 5 * $3 = $15
Total cost = $8 + $15 = $23

Technique IV:
Labor cost = 5 * $4 = $20
Capital cost = 1 * $3 = $3
Total cost = $20 + $3 = $23

Based on the calculations, Technique II has the lowest total cost, which makes it the most economically efficient technique for producing product A.

Therefore, the correct answer is B.II.