00:01
Okay, so i see that you need help with this and it says, which technology is the most capital intensive? so this can be done by looking at the units of capital k and labor, l, required for each of the technology.
00:14
The most capital intensive technology is the one that requires the most units of capital.
00:19
From the table, we can see that technology d actually requires the most capital because it's 12 units.
00:34
So technology d is the most capital intensive.
00:38
The most labor intensive technology is the one that requires the most units of labor.
00:44
We can see that technology a is the most labor intensive because it has the most units of labor, which is 18.
00:57
So technology a is the most labor intensive.
01:00
Next, we need to determine the technology that is the most effective.
01:03
This can be done by comparing the cost of each technology under different, price scenarios.
01:10
Under the first price scenario, pl is 7 and pk is 10.
01:14
The cost of each technology can be calculated as follows.
01:19
So that would be technology a, 4 times 10 plus 18 times 7.
01:31
That's 166.
01:34
Technology b, 6 times 10, and then 12 times 7...