Question: Four methods of completing a tax return and the time taken by each method are with a PC, 1 hour; with a pocket calculator, 12 hours; with a pocket calculator and paper and pencil, 12 hours; and with a pencil and paper, 16 hours. The PC and its software cost $1,000, the pocket calculator costs $10, and the pencil and paper cost $1.
Which method is economically efficient if the wage rate is (i) $5 an hour, (ii) $50 an hour, and (iii) $500 an hour?