Assume That in Table 30

question 4

Multiple Choice

$$\begin{array}{l}\begin{array} { c c c c } \text { Output (units) } & \text { Labor (units) } & \text { Output (units) } & \text { Capital (units) } \\10 & 1 & 20 & 1 \\26 & 2 & 56 & 2 \\38 & 3 & 86 & 3\end{array}\\\text { Table 30.5 }\end{array}$$ Assume that in Table 30.5 the cost of labor is $4 per unit and the cost of capital is $6 per unit.In Table 30.5, what is the cost efficiency of the second unit of labor?

• A) 64 units per $1 of cost.
• B) 16 units per $1 of cost.
• C) 26 units per $1 of cost.
• D) 4 units per $1 of cost.

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