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Homework answers / question archive / A firm is deciding between two different sewing machines
A firm is deciding between two different sewing machines. Technology A has fixed costs of $840 and marginal costs of $60 whereas Technology B has fixed costs of $540 and marginal costs of $110. At what quantity is the firm indifferent between the two technologies?
Technology A;
Fixed cost= $840
Marginal cost= $60
Technology B;
Fixed cost= $540
Marginal cost= $110
So,
Quantity will be;
110Q+ 540= 60Q+ 840
50Q= 300
Q= 300/ 50
= 6
