Suppose that real domestic output in an economy is 20 units,the quantity of inputs is 10,and the price of each input is $4.Answer the following question on the basis of this information. The per-unit cost of production in the economy described is:
A) $.50.
B) $1.
C) $2.
D) $5.

Question

Quizplus · Accepted Answer

The per-unit cost of production can be calculated by dividing the total cost of inputs by the output. In this case, the total cost of inputs is 10 x $4 = $40. Therefore, the per-unit cost of production is $40/20 = $2. So the correct answer is (C) $2.

Suppose That Real Domestic Output in an Economy Is 20