Multiple Choice
Use the following information to answer Questions 39 - 43
Jim's Production is planning on acquiring a competitive firm with a view to change production technologies.The two firm technologies produce the same output but with different cost functions.Jim's Production technology has a cost function = 1000 + 0.10Q whereas the competitor's cost function = 500 + 0.15Q.
-If the company plans to produce 5000 units of output,is acquiring the competitor's technology a good idea?
A) Yes,because the competitor has a low-marginal-cost technology
B) Yes,because the competitor has a high-marginal-cost technology
C) Yes,because the company plans to produce less than the break-even quantity
D) Both b and c
Correct Answer:
Verified
Correct Answer:
Verified
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