Question: Technical and Allocative Efficiency Listed below are several possible input combinations for producing 7 , 5 0 0 units of a pocket PC . Two
Technical and Allocative Efficiency
Listed below are several possible input combinations for producing units of a pocket PC Two of the input combinations are technically efficient.
Materials Labor Energy
Unit input prices $ $ $
Input combinations:
A
B
C
D
Required:
Identify the technically efficient input combinations.
Which of the two technically efficient input combinations should be used?
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