Explain clearly

7. Use economic analysis to explain why tenants in New York City who are covered by rent-controlled laws do not want to move. Assume that a firm finds that its profits will be maximized (or losses minimized) when it produces $30 worth of product X. Each of these techniques shown in the following table will produce exactly $30 worth of X Unit resource prices Method #1 Method #2 Method #3 Land Labor 2 Capital Entrepreneurship 2 (a ) Which method is most efficient? Why? (b) Given the above prices, will the firm adopt a new method which involves 10 units of land, 3 of labor, 2 of capital, and 2 of entrepreneurial ability? (c) Suppose the price of capital falls to $1 without any other prices changing. Which of the methods will the firm now choose? Why