A shortage will exert pressures for the price to decrease

Firm A can produce a unit of output with 10 hours of labor and 5 units of material. Firm B can produce a unit of output with 5 hours of labor and 10 units of material

Firm C can produce a unit of output with 10 hours of labor and 10 units of material. If the prices of labor and material are $10 per hour and $5 per unit, respectively, which of these firms is the most technologically efficient? A) firm A only B) firm B only C) firm C only D) Firms A and B could both be technologically efficient.

The present value model of investment states that an asset's current price should be equal to the:

A. Sum of the present values of all of its future payments or earnings B. Sum of all of its future payments or earnings times the number of years of its life C. Life of the asset times the present values of all of its future payments or earnings D. Present values of all of its future payments or earnings divided by its life in years