Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / Suppose that an economy produces 2,400 units of output, employing 30 units of input, and the price of the input is $20 per unit
Suppose that an economy produces 2,400 units of output, employing 30 units of input, and the price of the input is $20 per unit. The per-unit cost of production is
Multiple Choice
a) $0.25.
b) $0.50.
c) $0.10.
d) $0.80.
Computation of the per unit cost of production:-
Per unit cost of production = Cost of inputs / Total number of output
= 30 * $20 / 2,400
= $600 / 2,400
= $0.25
Hence, the correct option is 1) $0.25
