A company plans to expand its operations in the coming year. It is situated near a town where there is availability of labour at reasonable rates, Also the effective machinery for production can be obtained easily. The company as caught between the choice of technique of production. What do you suggest ?

A company plans to expand its operations in the coming year. It is sit

1.	A company plans to expand its operations in the coming year. It is situated near a town where there is availability of labour at reasonable rates, Also the effective machinery for production can be obtained easily. The company as caught between the choice of technique of production. What do you suggest ?
Answer» Answer :Company should ANALYSE its requirements CAREFULLY. It should choose an ideal factor combination to maximise profits. Since the labour and machines both are AVAILABLE at reasonable rates, the company should use both fixed and VARIABLE FACTORS optimally.