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Insourcing Incurs a Fixed Cost of $1000 and a $5

question 56

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Insourcing incurs a fixed cost of $1000 and a $5 variable cost. Outsourcing incurs a fixed cost of $2000 and a $2 variable cost. What is the indifference point?


Definitions:

Genotype

Genetic makeup of an individual.

Phenotype

Characteristic observed in an individual due to the expression of his or her genotype.

Progeria

Severe retardation of growth after the first year accompanied by a senile appearance and death at an early age.

Parturition

The process of childbirth or the act of giving birth.

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