Only Two Resources, Capital and Labor, Are Used in an Economy

question 142

Multiple Choice

Only two resources, capital and labor, are used in an economy to produce an output of 600 million units. If the total cost of capital resources is $300 million and the total cost of labor resources is
$100 million, then the per-unit production costs in this economy are

• A) $0.67.
• B) $1.50.
• C) $2.00.
• D) $3.00.

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained within the business for reinvestment or to pay down debt, instead of being distributed to shareholders as dividends.