Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the...

   

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Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, what production technique should this firm use to produce 2 units of output? A) production technique A B) production technique B C) The firm is indifferent between production technique A and production technique B. D) It is impossible to determine if the firm should select production technique A or B because total fixed costs are not given. Produce 1 unit of output 2 units of output 3 units of output Using Techniques А AF B AB А AF А Table 8.1 B Units of Variable K 27 84 14 8 16 12 Inputs L 8 12 22 22 12 20 12 Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, what production technique should this firm use to produce 2 units of output? A) production technique A B) production technique B C) The firm is indifferent between production technique A and production technique B. D) It is impossible to determine if the firm should select production technique A or B because total fixed costs are not given. Produce 1 unit of output 2 units of output 3 units of output Using Techniques А AF B AB А AF А Table 8.1 B Units of Variable K 27 84 14 8 16 12 Inputs L 8 12 22 22 12 20 12