Answer the Question on the Basis of the Following Information

question 52

Multiple Choice

Answer the question on the basis of the following information.An economy is employing 2 units of capital,5 units of raw materials,and 8 units of labor to produce its total output of 640 units.Each unit of capital costs $10;each unit of raw materials,$4;and each unit of labor,$3. Refer to the information.If the per-unit price of raw materials rises from $4 to $8 and all else remains constant,the per-unit cost of production will rise by about:

• A) 100 percent.
• B) 50 percent.
• C) 40 percent.
• D) 30 percent.

---

Definitions:

Most Probable

Referring to an event or outcome that has the highest likelihood of occurring compared to other possibilities.

Statistical Significance

A measure indicating that the likelihood of an observed effect or difference in a study is not due to chance alone.

Observed Differences

Variations or disparities noted upon examination or comparison of subjects or objects.

Standard Deviations

A statistic that measures the dispersion or variability within a set of numerical data, indicating how much individual data points differ from the mean.