Which method is economically efficient if the wage rate is (i) $5 an hour? (ii) $50 an
Question:
(i) $5 an hour?
(ii) $50 an hour?
(iii) $500 an hour?
Four methods of completing a tax return and the time taken by each method are: with a PC, 1 hour; with a pocket calculator, 12 hours; with a pocket calculator and paper and pencil, 12 hours; and with a pencil and paper, 16 hours. The PC and its software cost $1,000, the pocket calculator costs $10, and the pencil and paper cost $1.
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i The economically efficient method is the technologically efficient me...View the full answer
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