At what quantity is Sarah Machinery indifferent between

By admin / June 30, 2020

Sarah’s machinery company is deciding to dump their current technology A for a new technology B with a smaller fixed cost but a bigger marginal costs. The current technology has a fixed costs of $500 and a marginal cost of $50 whereas the new technology has a fixed costs of $250 and a marginal costs of $100. At what quantity is Sarah Machinery indifferent between two technologies

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