Final answer:
The cost per unit and the selling price per unit have remained unchanged, indicating a stable pricing period in the market, possibly due to factors like stable production costs and market demand.
Step-by-step explanation:
If the cost per unit and the selling price per unit have remained unchanged over the past two years, this indicates a period of stable prices in the market. Fluctuations in prices are common in economies, where a period of a price surge could be followed by a time when prices flatten or even decline slightly as markets correct and adjust.
This stability could be attributed to various factors, including stable production costs or market demand, consistent consumer purchasing power, or effective pricing strategies by companies.
It is also worth noting that the concept of marginal cost is relevant here. As the marginal cost of the first unit of output is equal to the total cost, if this marginal cost has not changed over the period, it can be a factor influencing the stability of prices. Fixed and variable costs are components of this, and their consistency can contribute to stable unit costs and selling prices.