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Agata [3.3K]
3 years ago
12

Sarah's Machinery Company is deciding to dump its current technology A for a new technology B with smaller fixed costs but bigge

r MCs. The current technology has fixed costs of $500 and MCs of $50 whereas the new technology has fixed costs of $250 and marginal costs of $100. At what quantity is Sarah's Machinery Company indifferent between two technologies?
Business
1 answer:
Montano1993 [528]3 years ago
7 0

Answer:

The quantity that Sarah's Machinery Company is indifferent between two technologies is 5.

Explanation:

We are looking for the quantity that Sarah's Machinery Company is  indifferent between two technologies,  so we have to find the quantity that the total cost with technology A is the same to the total cost with technology B

Total cost  technology A=500+50x

Total cost  technology B=250+100x

500+50x=250+100x

500-250=100x-50x

250=50x

x=250/50=5

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Explanation:

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Using the intuitive least cost method for the given transportation problem, answer the following: Cleveland Dayton Erie Supply A
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Explanation:

Solution

From the example given, we solve for which demand location will have an unmet demand

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The Maximum quantity that can be shipped from Harrisburg to Dayton is 175

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From Allentown to Erie = 0 units

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3 years ago
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c

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Answer:

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