Suppose that the table presented below shows an economy's relationship between real output and the inputs needed to produce that output: Input Quantity Real GDP 150.0 $ 400 112.5 300 75.0 200 Instructions: Enter your responses answers rounded to 2 decimal places. a. What is the level of productivity in this economy? b. What is the per-unit cost of production if the price of each input unit is $2? $ c. Assume that the input price increases from $2 to $3 with no accompanying change in productivity. What is the new per-unit cost of production?
Suppose that the table presented below shows an economy's relationship between real output and the inputs needed to produce that output: Input Quantity Real GDP 150.0 $ 400 112.5 300 75.0 200 Instructions: Enter your responses answers rounded to 2 decimal places. a. What is the level of productivity in this economy? b. What is the per-unit cost of production if the price of each input unit is $2? $ c. Assume that the input price increases from $2 to $3 with no accompanying change in productivity. What is the new per-unit cost of production?
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.2P
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