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11. Ford Motor Company produces a lithium battery for its cars that has the following costs per unit: Tesla can provide the lithium battery to
11. Ford Motor Company produces a lithium battery for its cars that has the following costs per unit: Tesla can provide the lithium battery to Ford for $20 per unit. Ford has determined that 80 percent of its fixed overhead would NOT continue if it purchased the battery. However, if Ford I no longer produces batteries, it will rent its battery factory. Ford currently produces 8,000 batteries per year. What is the minimum amount of rent income Ford would earn from renting its battery factory to be indifferent between making or buying (namely, the total relevant costs of making the battery is equal to the total relevant costs of buying the battery)? a. $18,000 b. $17,000 c. $16,000 d. $15,000
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