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.
-The per unit cost of production in the economy described above is:
A) $.50.
B) $1
C) $2
D) $5

Question

Quizplus · Accepted Answer

The per unit cost of production is calculated by dividing the total cost of inputs by the quantity of output produced. In this case, the total cost of inputs is:

10 inputs * $4 per input = $40

Therefore, the per unit cost of production is:

$40 total cost / 20 units of output = $2 per unit

Suppose That Real Domestic Output in an Economy Is 20