Below Are Some Cost Data Pertaining to Plant 1,which Has

question 46

Multiple Choice

Below are some cost data pertaining to Plant 1,which has total fixed costs of $1,000.Suppose that Plant 2 is exactly twice the size of Plant 1 while using (at economic capacity) twice the amount of labour and materials,and that it produces exactly twice the output.Further,assume that the prices of these inputs do not change.

-Refer to the information above to answer this question.What is the total cost of producing an output of 60 in Plant 2?

• A)$7,000.
• B)$9,000.
• C)$15,000.
• D)$24,500.
• E)$30,000.

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