Consider the Following Table -If the Price of Each Input Is $5,the Per-Unit Cost

question 54

Multiple Choice

Consider the following table:

$\begin{array}{|l|l|}\hline \text { Input Quantity } & \text { Real Output } \\\hline 100 & 200 \\\hline 150 & 300 \\\hline 200 & 400 \\\hline\end{array}$
-If the price of each input is $5,the per-unit cost of production in this economy is:

• A)$5.00
• B)$2.75
• C)$2.50
• D)$0.40
• E)$2.00

Recognize the significance of opportunity costs in profit-maximizing firm decisions.

Explain the impact of economies and diseconomies of scale on firm's cost structures.

Understand the factors contributing to diseconomies of scale within large management structures.

Explain the conditions under which firms experience economies of scale.

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Definitions:

Formalities

Specific procedures or ceremonial acts legally required to validate contracts, documents, or other legal actions.

Purported Partners

Individuals who appear to or claim to be partners in a business to the public, regardless of the legality of their partnership status.

Authority

The legal power or right given to an individual or entity to act on behalf of another or make decisions within certain parameters.

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.