The following shows different technologies for producing 100 metres of cloth. Technology Number of workers Coal required (tonnes) A 4 2 B 1 6 C 3 7 D 5 5 a) Which technologies would not be chosen by firms? Explain. b) Of the remaining technologies, what determines the technology a firm would choose?
The following shows different technologies for producing 100 metres of cloth. Technology Number of workers Coal required (tonnes) A 4 2 B 1 6 C 3 7 D 5 5 a) Which technologies would not be chosen by firms? Explain. b) Of the remaining technologies, what determines the technology a firm would choose?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 2SCQ: Continuing from Exercise 7.1, the films factory sits on land owned by the firm that it could rent...
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2. The following shows different technologies for producing 100 metres of cloth.
Technology |
Number of workers |
Coal required (tonnes) |
A |
4 |
2 |
B |
1 |
6 |
C |
3 |
7 |
D |
5 |
5 |
a) Which technologies would not be chosen by firms? Explain.
b) Of the remaining technologies, what determines the technology a firm would choose?
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