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An Economy Is Employing 2 Units of Capital, 5 Units

Question 147

Multiple Choice

An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labour to produce its total output of 640 units.Each unit of capital costs $10, each unit of raw materials, $4, and each unit of labour, $3.Refer to the above information.The per unit cost of production in this economy is:


A) $.05.
B) $.10.
C) $.50.
D) $1.00.

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