​Use the Following Setup for the Next Question

question 39

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 $110 per unit,what is the break even amount of units for technology B?

• A)​20
• B)25
• C)30
• D)​None-They would have to shut down

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Definitions:

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual, exchange-traded, and closed funds.

Portfolio Owner

An individual or entity that holds a collection of investments, including stocks, bonds, real estate, or other financial assets, and is responsible for the management and decision-making of the portfolio.

High Average Returns

Refers to investments that consistently yield returns above the market or sector average over a period.

Equities

Equities represent an ownership interest in a company through shares of its stock, giving shareholders a claim on the company's assets and earnings.