Question

Suppose that an economy produces 2,400 units of output, employing 60 units of input with a price of $30 per unit. The per-unit cost of production is A. $0.25. B. $0.50 C. $0.75 D. $2.00

Answer 1

per unit cost = $0.75

so correct option is c. $0.75

Step-by-step explanation:

given data

produces output Q = 2400 units

input = 60 units

price = $30 per unit

to find out

per unit cost of production

solution

we find here total input cost TC that is

TC = input × cost ...........1

put here value

TC = 30 × 60

TC = 1800

so per unit cost will be here express as

per unit cost =
`(TC)/(Q)` ....................2

put here value we get

per unit cost =
`(1800)/(2400)`

per unit cost = $0.75

so correct option is c. $0.75