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 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.
Correct Answer:

Verified
Correct Answer:
Verified
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