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

Economics May 18, 2021

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.

Expert Solution

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

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote