The table below shows cost data for three different-sized plants---1, 2, and 3---which are the only three plants possible. $$\begin{array} { c c c c }
\hline \text { Output } & \text { Plant 1 } & \text { Plant 2 } & \text { Plant 3 } \
\hline 200 & \$ 14 & \$ 16 & \$ 18 \
400 & 12 & 13 & 14 \
600 & 13 & 10 & 11 \
800 & 14 & 11 & 9 \
1000 & 15 & 14 & 11 \
\hline
\end{array}$$ a) In what plant size is MES achieved?
b) What is economic capacity for plant size 2?
c) What is the right-sized plant to produce an output of 400?

Question

The table below shows cost data for three different-sized plants---1, 2, and 3---which are the only three plants possible. $$\begin{array} { c c c c } 
\hline \text { Output } & \text { Plant 1 } & \text { Plant 2 } & \text { Plant 3 } \
\hline 200 & \$ 14 & \$ 16 & \$ 18 \
400 & 12 & 13 & 14 \
600 & 13 & 10 & 11 \
800 & 14 & 11 & 9 \
1000 & 15 & 14 & 11 \
\hline
\end{array}$$ a) In what plant size is MES achieved?
b) What is economic capacity for plant size 2?
c) What is the right-sized plant to produce an output of 400?

Quizplus · Accepted Answer

The Answer of The table below shows cost data for three different-sized plants---1, 2, and 3---which are the only three plants possible. $$\begin{array} { c c c c } 
\hline \text { Output } & \text { Plant 1 } & \text { Plant 2 } & \text { Plant 3 } \
\hline 200 & \$ 14 & \$ 16 & \$ 18 \
400 & 12 & 13 & 14 \
600 & 13 & 10 & 11 \
800 & 14 & 11 & 9 \
1000 & 15 & 14 & 11 \
\hline
\end{array}$$ a) In what plant size is MES achieved?
b) What is economic capacity for plant size 2?
c) What is the right-sized plant to produce an output of 400?

The Table Below Shows Cost Data for Three Different-Sized Plants---1