Questions: Suppose a firm can produce 70 units of a product, Zenia, by combining labor, land, capital, and entrepreneurial ability, as in the four alternative Techniques shown in the table below. Assume further that the firm can hire labor at 3 per unit, land at 3 per unit, capital at 6 per unit, and entrepreneurship at 9 per unit. Production Techniques A B C D --------------- Labor 4 10 6 5 Land 5 3 3 3 Capital 5 2 4 4 Entrepreneurship 1 1 1 1 Refer to the provided table, and suppose that the firm uses production Technique D. If each of the 70 units of Zenia that are produced sells for 1 apiece, then how much will be the total profits of the firm from 70 units of Zenia? Multiple Choice 70 57 13

Transcript text: Suppose a firm can produce 70 units of a product, Zenia, by combining labor, land, capital, and entrepreneurial ability, as in the four alternative Techniques shown in the table below. Assume further that the firm can hire labor at $\$ 3$ per unit, land at $\$ 3$ per unit, capital at $\$ 6$ per unit, and entrepreneurship at $\$ 9$ per unit. \begin{tabular}{|l|c|c|c|c|} \hline \multirow{2}{*}{} & \multicolumn{4}{|c|}{ Production Techniques } \\ \cline { 2 - 5 } & A & B & C & D \\ \hline Labor & 4 & 10 & 6 & 5 \\ \hline Land & 5 & 3 & 3 & 3 \\ \hline Capital & 5 & 2 & 4 & 4 \\ \hline Entrepreneurship & 1 & 1 & 1 & 1 \\ \hline \end{tabular} Refer to the provided table, and suppose that the firm uses production Technique D. If each of the 70 units of Zenia that are produced sells for $\$ 1$ apiece, then how much will be the total profits of the firm from 70 units of Zenia? Multiple Choice $\$ 70$ $\$ 57$ $\$ 13$