suppose that a new alloy is invented which uses copper and zinc in fixed proportions where 1 unit of output requires 4 units of copper and 4 units of zinc for each unit of alloy produced.If no other inputs are needed, the price of copper is $5, and the price of zinc is $2, what is the average cost per unit when 2,000 units of the alloy are produced?
A)$14.25
B)$.50
C)$28
D)$500
E)$14,250

Question

Quizplus · Accepted Answer

The cost of copper per unit of alloy is 4 units * $5 = $20. The cost of zinc per unit of alloy is 4 units * $2 = $8. So, the total cost per unit of alloy is $20 + $8 = $28.

Suppose That a New Alloy Is Invented Which Uses Copper