16. This is a fairly straightforward question requiring only that one examine the graph carefully. Three different production methods are shown which yield 2,500 units of output per week. These are U, V, and Z as each of these is on the 2,500 isoquant. However method Z is on a lower isocost line than the other two, in fact is is the cheapest method possible at these factor prices. We know this because the isocost line is tangent to the isoquant meaning the marginal rate of technical substition is equal to the factor price ratio, or