Suppose that an economy has the following relationship between its real domestic output and the input quantities necessary for producing that level of output

Input quantities

400

300

Real Domestic output

800

600

a) What is the level of productivity in this economy?

b) what is the per unit cost of production if the price of each input is $4?

c) If the input price rises from $4 to $6, what is the new per unit cost and what will happen to AS