Answer
a) 1/2 cake per hour
Work Step by Step
The cake is sold for 20 dollars, and labor is 10 dollars per hour. At this rate, the cake takes 2 hours to make. However, for a single laborer, one hour allows 1/2 cake to be made.
Principles of Economics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516587X
ISBN 13:
978-1-28516-587-5
Chapter 18 - Part VI - The Markets for the Factors of Production - Quick Check Multiple Choice - Page 391: 3
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