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3. A firm intends to increase the capacity by adding a new machine. Two alternatives, A and B, have been identified, and the associated coss

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3. A firm intends to increase the capacity by adding a new machine. Two alternatives, A and B, have been identified, and the associated coss and revenues have been estimated. Annual fixed costs would be $100,000 for A and $120,000 for B; variable costs per unit would be $54 for A and $50 for B; and revenue per unit would be $65. a) At what volume of output would the two alternatives yield the same profit? (10 Points) 3 5 g

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