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

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 output produced if the total cost in Plant 2 is $14,000?

A) 10.
B) 20.
C) 30.
D) 40.
E) 80.