a-firm-can-produce-a-certain-output-with-either-5-units-of-input-a-and-3-units-o

Question

A firm can produce a certain output with either 5 units of input A and 3 units of input B or 3 units of input A and 6 units of input B. If the price of input A is $2,000 per unit and the price of input B is $1,000 per unit, which combination is more cost-effective?

Accepted Answer

3 units of input A and 6 units of input B

Answer

5 units of input A and 3 units of input B

Answer

Both combinations are equally cost-effective.

Answer

Neither combination is cost-effective.

A firm can produce a certain output with either 5 units of input A and 3 units of input B or 3 units of input A and 6 units of input B. If the price of input A is \$2,000 per unit and the price of input B is \$1,000 per unit, which combination is more cost-effective?