Table 305 Assume That in Table 30

question 48

Multiple Choice

Table 30.5 $$\begin{array} { | r | c | c | c | } \hline \text { Output (urits) } & \text { Labor (urits) } & \text { Output (urits) } & \text { Capital (urits) } \\\hline 10 & 1 & 20 & 1 \\\hline 26 & 2 & 56 & 2 \\\hline 38 & 3 & 86 & 3 \\\hline\end{array}$$ Assume that in Table 30.5 the cost of labor is $4 per unit and the cost of capital is $6 per unit.In Table 30.5,what is the cost efficiency of the second unit of labor?

• A)64 units per $1 of cost.
• B)16 units per $1 of cost.
• C)26 units per $1 of cost.
• D)4 units per $1 of cost.

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