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Determine per unit cost of production

Assume that the hypothetical economy had the given relationship among its real domestic output and the input quantities essential for producing that level of output:

2318_relation of hypothetical economy.png

Determine per unit cost of production if the price of each input is $2?

 

 

 

 

E

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Per unit cost of production will be $.75 (= $2 ´ 112.5 / 300).

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