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 economic capacity in Plant 2?
A)20.
B)30.
C)40.
D)50.

Question

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 economic capacity in Plant 2?
A)20. 
B)30. 
C)40. 
D)50.

Quizplus · Accepted Answer

Economic capacity is the maximum output that can be produced with the available resources. In Plant 2, the economic capacity is 20 units.

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