Table 305 Assume That in Table 30

question 115

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 capital?

• A)6 units per $1 of cost.
• B)36 units per $1 of cost.
• C)56 units per $1 of cost.
• D)9.33 units per $1 of cost.

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Definitions:

Quantity Demanded

The total amount of a commodity that consumers are willing to purchase at a specific price point, at a given time.

Perfectly Elastic

A situation in economics where a small change in price leads to an infinite change in quantity demanded or supplied.

Inelastic

Refers to a scenario where the supply or demand for a product or service shows little to no reaction to price fluctuations.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell, with price typically on the vertical axis and quantity on the horizontal axis.