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Three Processes Have the Following Costs: Process a Has a Fixed

Question 1

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Three processes have the following costs: Process A has a fixed cost of $2,000 and variable cost of $3.00/unit. Process B's fixed cost is $4,000 and variable cost is $2.60/unit. Process C's fixed cost is $8,000 and variable cost is $2.40/unit.
-Over what output range would Process C be preferred?


A) Between 0 and 4,999 units
B) Between 5,100 and 19,999 units
C) Between 20,001 and more units
D) The three processes have exactly the same total costs for any chosen unit.
E) Do not have enough information to compute

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