Below Is Short-Run Cost Data for Four Different Plant Sizes

question 80

Multiple Choice

Below is short-run cost data for four different plant sizes.Plant 2 has exactly twice as many inputs as does Plant 1.Plant 3 has exactly three times as many inputs as does Plant 1 and Plant 4 has exactly four times as many inputs as does Plant 1.

-Refer to the information above to answer this question.What is the best plant to use for an output of 25?

• A)Plant 1.
• B)Plant 2.
• C)Plant 3.
• D)Plant 4.
• E)Any of the four plants would be fine.

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Definitions:

False Alternative

A logical fallacy that occurs when only limited alternatives are considered, when in fact more options are available.

Dichotomy

A division or contrast between two things that are or are represented as being opposed or entirely different.

Argument

A series of statements or reasons made to persuade others that an idea or point of view is correct or valid.

True

In accordance with fact or reality, without falsehood or error.