Question

A commodity was produced by using 6 units of labour and 4 units of capital. Thus the total cost comes to Rs.620. If another commodity is produced by using 8 units of labour and 2 units of capital, the total cost comes to Rs.560. What is the cost per unit of labour and per unit of capital? Solve by method of elimination.

Answer 1

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

6 units of labour and 4 units of capital , total cost is620.

6x + 4y = 620 (eq1)

similarly,

8x + 2y= 560 (eq2)

divide eq 1 by 2, we get

3x + 2y = 310 (eq3)

subtract eq3 from eq2