Refer to Figure 7.6. If the price of capital is $10 and the price of labor is $20, the optimal production technique is

A) A.
B) B.
C) C.
D) D.

Optimal Production Technique

A method that contributes to the most efficient process of producing goods and services given the available resources and technology.

Price of Capital

The cost of using capital assets, including the interest or finance charges paid on borrowed funds or the opportunity cost of using owned capital.

Price of Labor

The wage rate or the cost of hiring workers in the labor market.