​Use the Following Setup for the Next Question

question 63

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.
-​If the price is $60 per unit,what is the break even amount of units for technology A?

• A)​50
• B)100
• C)150
• D)​None-They would have to shut down

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Definitions:

Inspection Samples

Refers to a selection of items taken from a larger population and tested or inspected to determine the quality or performance of the whole.