A brewery is seeing two potential production investments., Ask an Expert

Management Studies

Question- A brewery is seeing two potential production investments.
Option A costs an initial $2 million as well as will involve constant marginal cost of $5
Option B costs an initial $4 million as well as will involve constant marginal cost of $3
In order to make the calculations simple presume that the annual capital cost is 10% of the total investment. At what assembly quantity these two investment are opportunities?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9372202

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