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.

Question

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.

Quizplus · Accepted Answer

The Answer is B

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