If 1 Unit Each of Land and Labor Are Used

question 12

Multiple Choice

If 1 unit each of land and labor are used to make product A (costing a total of $10) , and 1 unit of land and 3 units of labor are used to make product B (costing a total of $22) , then the price of:

• A)land is $6 and the price of labor is $4.
• B)labor is $6 and the price of land is $4.
• C)land is $8 and the price of labor is $2.
• D)each input is $4.
• E)labor is 3 times the price of land, but the exact amount cannot be determined from the above.

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Definitions:

Constant

A value that does not change in mathematical expressions or scientific experiments, contrasted with variables which can vary.

Slope

A measure of the steepness or incline of a line, representing the rate of change of a variable.

Path Coefficients

Standardized regression weights used in structural equation models that indicate the strength and direction of relationships between variables.

Causally Related

A relationship between variables where a change in one variable directly causes a change in another variable.