​Use the Following Setup for the Next Question

question 40

Multiple Choice

​Use the following setup for the next question.
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.
-​At what quantity is the firm indifferent between the two technologies?

• A)​10
• B)2
• C)5
• D)​8

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Definitions:

Promisee

The person to whom a promise is made or who stands to benefit from the fulfillment of the promise.

Express Contract

An express contract is a legally binding agreement where the terms are explicitly stated by the parties involved either orally or in writing.

Implied Contract

An agreement created by actions of the parties involved, rather than written or spoken words, which has the same legal force as a written contract.

Executed Contract

A contract in which all parties involved have fulfilled their obligations as outlined in the agreement.