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charle [14.2K]
2 years ago
13

Assume it takes 10 units of labor to produce 4 units of output. When the price of labor is $6 per unit and fixed costs equal $60

, what is the total cost of those 4 units of output? Select one:
a. $120

b. $70

c. $84

d. $60
Mathematics
1 answer:
Rudiy272 years ago
3 0

Answer:

<em> a) $120</em>

Step-by-step explanation:

Given:

It takes 10 units of labor to produce 4 units of output.

When the price of labor is $6 per unit and fixed costs equal $60.

<u><em>Question asked:</em></u>

What is the total cost of those 4 units of output?

Solution:

<u>To produce 4 units of output:</u>

Price of 1 labor = $6

Price of 10 labors = $6 \times 10 = $60

Fixed cost = $60

<u>Total cost = Price of labors to produce 4 units + Fixed cost </u>

                = $60 + $60 = $120

<em>Therefore, the total cost of those 4 units of output is $120.</em>

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