Efficiency II
1. Six units of labor can produce 42 units of output. What is the technological efficiency of labor?
2. Given a technological efficiency of 8, an output price of $25, and an input price of $5.00, what is the economic efficiency of the input?
3. Given an economic efficiency of $50, technological efficiency of 100, and an input price of $10.00, what is the output price? If 500 units of output are produced, what is the number of inputs used?
4. If production plan A has a technological efficiency of 20 and production plan B uses 4 units of input, at least how many units of output are required for production plan B to be the most efficient?
5. Production plan A has an economic efficiency of 30, an output price of $15.00, and an input price of $2.00. Production plan B has an economic efficiency of 20, an output price of $4.00, and an input price of $1.00. Which plan is the most technologically efficient?
6. Why is efficiency important?
7. Fill in the table below with the correct answers:
| Units of input | Units of output | Technological Efficiency | Output Price | Input Price | Economic Efficiency |
|---|---|---|---|---|---|
|
5 |
10 |
. | $20.00 | $5.00 | . |
|
25 |
5 |
. | $2.00 |
20 |
|
|
8 |
. |
6 |
$7.00 | . |
21 |
|
2 |
. | . | $15.00 | $4.00 |
30 |
|
6 |
. |
9 |
. | $3.00 |
3 |