Social Studies, 13.08.2019 09:10, mhuerta71001
1. table 2.1 contains information on three techniques for producing $15 worth of bar soap. assume that we
said “$15 worth of bar soap cost $3 per bar and all three techniques produce 5 bars of soap ($15 – $3 per
bar x 5 bars). so you know each technique produces 5 bars of soap.
a) what technique will you want to use if the price of a bar of soap falls to $2.75?
b) what if the bar of soap rises to $4?
c) what if the bar of soap rises to $5?
d) how many bars of soap will you want to produce if the price of a bar of soap falls to $2?
e) suppose that the price of soap is again $3 per bar but that the prices of all four resources are now $1
per unit. which is now the least-profitable technique?
f) if the resource price return to their original levels (the ones shown in the table) but a new technique
is invented that can produce 3 bars of soap using 1 unit of each of the four resources, will firms
prefer the new technique?
Answers: 1
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1. table 2.1 contains information on three techniques for producing $15 worth of bar soap. assume th...
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