Economics 9708 · AS & A Level · Factors of production

Factors of production — practice question

A business starts from an initial profit-maximising position and uses two factors, X and Y, to make a good that is sold at $3. Factor prices and productivities then alter. The updated figures are shown in the table. What quantities should the firm use in order to reach equilibrium?

  • Aless of both X and Y
  • Bmore of X and less of Y
  • Cmore of Y and less of X
  • Dmore of both X and Y

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