Use the Following Information to Answer Questions 33 - 35

question 7

Multiple Choice

Use the following information to answer Questions 33 - 35
Sarah's Machinery Company is deciding to dump their current technology A for a new technology B with small fixed costs but big marginal costs.The current technology has fixed costs of $500 and marginal costs of $50 whereas the new technology has fixed costs of $250 and marginal costs of $100.
-If the company plans to produce 9 machines,which technology should the firm choose?

• A)The low-marginal-cost technology
• B)The high-marginal-cost technology
• C)Either technology because they are equally cost efficient
• D)Need more information

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Definitions:

Perception

The psychological process through which people interpret sensory information in order to represent and understand the environment around them.

Psychokinesis

The purported ability to move or manipulate objects with the mind.

Mental Concentration

The ability to direct one's thinking in whatever direction one would intend, focusing mental efforts on a specific object, task, or subject.

Tenant Farmer

An agricultural worker who rents land to farm on, rather than owning it, often under conditions that can lead to long-term economic dependency.