A new medicine is discovered that uses component X1 and X2 in fixed proportions where each unit of the medicine requires 3 units of X1 and 2 units of X2. If no other inputs are required, if the price of X1 is £2 per unit, and the price of X2 is £5 per unit and if total output is 5,000 units, what is the average cost per unit of output? Select one: a. £16 b. £.50 O c. £25 O d. £20 e. £2

A new medicine is discovered that uses component X1 and X2 in fixed proportions where each unit of the medicine requires 3 units of X1 and 2 units of X2. If no other inputs are required, if the price of X1 is £2 per unit, and the price of X2 is £5 per unit and if total output is 5,000 units, what is the average cost per unit of output? Select one: a. £16 b. £.50 O c. £25 O d. £20 e. £2

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 3.4IP

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