Solved

Use the Following Information to Answer Questions 33 - 35

Question 20

Multiple Choice

Use the following information to answer Questions 33 - 35
Sarah's Machinery Company is deciding to dump their current technology A for a new technology B with small fixed costs but big marginal costs.The current technology has fixed costs of $500 and marginal costs of $50 whereas the new technology has fixed costs of $250 and marginal costs of $100.
-At what quantity is Sarah Machinery indifferent between two technologies?


A) 5
B) 6
C) 7
D) 8

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions