Describe the optimal production strategy for the firm

Reference no: EM13952739

A firm uses two inputs in the production of a single good. The input requirements per unit of output for a number of alternative techniques are given by the following table:

Process	1	2	3	4	5	6
Input 1	9	15	7	1	3	4
Input 2	4	2	6	10	9	7

The firm has exactly 140 units of input 1 and 410 units of input 2 at its disposal.

1. Discuss the concepts of technological and economic efficiency with refer- ence to this example.

2. Describe the optimal production strategy for the firm.

3. Would the firm prefer 10 extra units of input 1 or 20 extra units of input 2?

Reference no: EM13952739

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