Question

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:

Answer 1

Answer:

$2 per-unit cost of production

Explanation:

since 20 units are produced and 10 units of input are used so,

divide 20/ 10 to get per unit cost of production.

        20/10 = $2