Question

A commodity was produced by using 3 units of labour and 2 units of capital, the total cost is Rs. 62. If the commodity had been produced by using 4 units of labour and one unit of capital, the cost is Rs. 56. What is the cost per unit of labour and capital? (Use determinant method).

Answer 1

Let the cost per unit of labour be Rs. x and cost per unit of capital be Rs. y.

Labour	Capital	Total cost
3 units	2 units	62
4 units	1 units	56