Suppose that a hypothetical economy has the following relationship between its real domestic output and the...

Suppose that a hypothetical economy has the following relationship between its real domestic output and the input quantities necessary for producing that level of output.

Input quantity	Real domestic output
400	800
300	600
100	200

(a) What is the level of productivity in this economy?

(b) What is the unit cost of production if the price of each input is $2.00?

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Expert Solution

Rahul Sunny answered 1 year ago

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