Suppose that an economy produces 2400 units of output, employing the 60 units of input, and the price of the input is $30 per unit.
Refer to the information above. If productivity increased such that 3000 units are now produced with the quantity of inputs still equal to 60, then per-unit production costs would:
A. Decrease and aggregate supply would decrease
B. Decrease and aggregate supply would increase
C. Increase and aggregate supply would decrease
D. Remain unchanged and aggregate supply would remain unchanged
B. Decrease and aggregate supply would increase
Economics
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