Hello, I have difficulty with the following exercise mostly graphs, I want to understand, thank you:

17. The method that is economically most efficient is:

a.the one that uses the least inputs

b.the one that maximizes total revenue

c.the one that provides the most employment

d.the one with the lowest cost

20. Refer to the data in the table below, which shows various methods of producing a given volume of output, to answer the questions below.

Method Capital Labour Output

A 5 12 100

B 8 15 100

C 7 10 100

The prices of capital and labour are $5 and $10 respectively. If the prices of capital and labour were reversed:

a.method B would be technically efficient

b.method C would be technically inefficient

c.method B would be economically efficient

d.method A would be economically efficient

32. The principle of substitution states that a firm will:

a.switch production lines to a good which uses the less expensive resource more intensely

b.use more of a cheap factor and less of a more expensive factor

c.avoid substituting one factor for another even when input prices change

d.use more of an expensive factor and less of a cheap factor

33. A firm uses 2 inputs: capital (K) and labour (L).

The following table shows the marginal product of capital (MPK) and the marginal product of labour (MPL) at various levels of capital and labour usage for a firm. The price of capital (PK) is $3 and the price of labour (PL) $5.

Level of usage of inputs K and L	Marginal product of K	Marginal of product of L
1	36	95
2	39	85
3	36	75
4	33	70
5	30	55
6	24	45

On the basis of the above information. what is the optimum input mix (K*, L*) for this firm?

a.K=3 and L=4

b.K=4 and L=4

c.K=2 and L=3

d.K=5 and L=4

e.K=4 and L=5

35. Refer to the table below, which shows various methods of producing DVD players, to answer the following question:

Method Capital Labour Output

A 50 250 5000

B 90 450 5000

C 25 400 5000

Which of the following methods cannot be economically efficient?

a.A

b.C

c.B

d.It is not possible to determine

40. Refer to the table below, which shows various methods of producing DVD players, to answer the following question:

Method Capital Labour Output

A 50 250 5000

B 90 450 5000

C 25 400 5000

The methods that are technically efficient are:

Select one:

a.A and C

b.A and B

c.B and C

d.all of the above