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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
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. Output SAC: Plant 1 10 200 20 175 30 150 40 175 50 200 60 250 70 350 6. Refer to the information above to answer this question. What is capacity output in Plant 1? A. 10. B. 30. C. 60. D. 70. Refer to the information above to answer this question. How much is total fixed cost in Plant 27 A. $2,000. B. $4,500. C. $9,000. D. $15,000. E. $24,500. Refer to the information above to answer this question. What is the total cost of producing an output of 60 in Plant 27 A. $7,000. B. $9,000. C. $15,000. D. $24,500. E. $30,000. 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
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