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12 October, 08:46

A firm is deciding between two different sewing machines. Technology A has fixed costs of $500 and marginal costs of $50 whereas Technology B has fixed costs of $250 and marginal costs of $100. If the price is $60 per unit, what is the break even amount of units for technology B?

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  1. 12 October, 11:42
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    250 / (60-100) = 250 (-40) = - 6.25

    6.25 units
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