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Plant sizes get larger as you move from ATC-1 to ATC-4. Output ATC-1 ATC-2 ATC-3 ATC-4 1,500 $ 10 15 $20 $30 2,000 $ 8

Plant sizes get larger as you move from ATC-1 to ATC-4.

Output ATC-1 ATC-2 ATC-3 ATC-4

1,500 $ 10 15 $20 $30

2,000 $ 8 12 17 25

2,500 $9 10 15 20

3,000 $12 8 13 18

3,500 $15 6 11 16

4,000 $18 10 9 14

4,500 $20 12 7 12

5,000 $24 15 11 10

5,500 $29 19 13 8

6,000 $35 25 15 9

Which plant size would produce at the least cost for the 1,500-2,500 range of output?

Multiple Choice

  • ATC-1
  • ATC-3
  • ATC-4
  • ATC-2

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