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Inbreadible! equipment is currently around $18,000. The scientist is hard at work trying to improve his method to reduce this large fixed cost, so that
Inbreadible! equipment is currently around $18,000. The scientist is hard at work trying to improve his method to reduce this large fixed cost, so that he can start a new firm and enter this market. The scientist hires you to help with market planning. His main question is this: "How low do my fixed costs need to be before I am certain that I'll be able to enter this market profitably?" Suppose the scientist succeeds at reducing the Inbreadible! fixed cost to $14,000. Should he enter? (The right answer is "maybe." Your job is to explain why.)
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