Suppose that an economy produces 300 units of output, employing 50 units of input, and the price of the input is $9 per unit. The level of productivity and the per-unit cost of production are
A) 1.50 and $6.00, respectively.
B) 6 and $1.50, respectively.
C) 5 and $6.00, respectively.
D) 5 and $1.50, respectively.

Question

Quizplus · Accepted Answer

Productivity = Output/Input = 300/50 = 6 units per input
Per-unit cost of production = Total cost of inputs/Output = ($9 per unit x 50 units)/300 units = $1.50 per unit

Suppose That an Economy Produces 300 Units of Output, Employing