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 capacity output in Plant 1?
A) 10.
B) 30.
C) 60.
D) 70.
Correct Answer:

Verified
Correct Answer:
Verified
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