An Economy Is Employing 2 Units of Capital, 5 Units

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.If the per unit price of raw materials rises from $4 to $8 and all else remains constant, the per unit cost of production will rise by about:

A) 100 percent.
B) 50 percent.
C) 40 percent.
D) 30 percent.