Four ways of laundering 100 shirts are:
LABOR METHOD CAPTIO
A 1 10
B 5 8
C 20 4
D 50 1
a. Which methods are technologically efficient?
b. Which method is economically efficient if the hourly wage rate and the implicit rental rate of capital are (i) wage rate $1, rental rate $100; (ii) wage rate $5, rental rate $50; and (iii) wage rate $50, rental rate $5?