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 labor to produce its total output of 640 units. Each unit of capital costs $10; each unit of raw materials, $4; and each
Unit of labor, $3. 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.