Calculations simple presume that the annual capital cost

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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?

Reference no: EM13101962

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