suppose that a new alloy is invented which uses copper and zinc in fixed proportions where 1 unit of output requires 5 units of copper and 3 units of zinc for each unit of alloy produced.If no other inputs are needed, the price of copper is $4, and the price of zinc is $2, what is the average cost per unit when 3,000 units of the alloy are produced?
A)$26
B)$13.33
C)$666.67
D)$.67
E)$13,333.33

Question

Quizplus · Accepted Answer

The cost of copper per unit of alloy is 5 units * $4 = $20. The cost of zinc per unit of alloy is 3 units * $2 = $6. The total cost per unit of alloy is $20 + $6 = $26.

Suppose That a New Alloy Is Invented Which Uses Copper