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As a producer of medical equipment, you have to choose your production technology. There are 2 ossible technologies. The first technology has no fixed cost
As a producer of medical equipment, you have to choose your production technology. There are 2 ossible technologies. The first technology has no fixed cost but $100 variable cost per unit. The second echnology has $10,000 fixed cost but only $20 variable cost per unit. The default technology is the one with low fixed cost, but you can switch if you want. Each unit will be sold at $120. Please make a decision whether to switch to the technology with high fixed cost under the following 2 scenario's: you either need to produce 10 units or 1000 units. Switch Technology? Technology cho: Profit Scenario 1: Produce 10 units FC=0,VC=$10C Scenario 2: Produce 1000 uni FC=0,VC=$10
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