Question

To manufacture 3,000 pairs of sandals in a week, a firm can use 3,600 workers and 135 machines or 270 machines and 3,300 workers. Which method is more technically efficient? Both are equally efficient Neither could be considered efficient 270 machines and 3.300 workers 3,300 workers and 270 machines is considered economically efficient as well as technically efficient 3,600 workers and 135 machines

Answer 1

Answer:

3,600 workers and 135 machines is more technically efficient.

Explanation:

a. For 3,600 workers and 135 machines

Worker technical efficiency = 3,600/3,000 = $120%

Machine technical efficiency = 135 / 3,000 = 4.50%

Average technical efficiency = (120% + 4.5%) / 2 = 62.25%

b. For 270 machines and 3,300 workers.

Worker technical efficiency = 270/3,000 = $9%

Machine technical efficiency = 3,300 / 3,000 = 110%

Average technical efficiency = (9% + 110%) / 2 = 59.50%

Conclusion

Since the average technical efficiency of 62.25% is higher than 59.50%, 3,600 workers and 135 machines is more technically efficient.