Suppose That Real Domestic Output in an Economy Is 20

question 111

Multiple Choice

Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4.Refer to the above information.All else equal, if the price of each input increased from $4 to $6, productivity would:

• A)fall from 2 to 3.
• B)fall from .50 to .33.
• C)rise from 1 to 2.
• D)remain unchanged.

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