Suppose That an Economy Produces 2,400 Units of Output, Employing

question 41

Multiple Choice

Suppose that an economy produces 2,400 units of output, employing 60 units of input, and the price of the input is $30 per unit. The per-unit cost of production is

• A) $0.25.
• B) $0.50.
• C) $0.75.
• D) $2.00.

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Definitions:

Cash Payback Period

The time period required for an investment to generate cash flows to recover the initial investment cost.

Capital Investment

Funds invested in a business with the expectation of future returns, often in the form of physical assets or capital expenditures.

Recovery

The process of regaining possession or control of something stolen or lost, or the process of returning to a normal state of health, mind, or strength.

Average Rate

A value derived by dividing the sum of several rates by the number of rates, often used in financial calculations.