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Medro and Mariana decided to add soup ( ) to their menu. When they did all the calculations of whether to make the soup themselves
Medro and Mariana decided to add soup () to their menu. When they did all the calculations of whether to make the soup themselves or buy it from an outside source ( ), they found the fixed cost to make the pots of soup to be = 10000 KD/yr and the fixed cost associated with buying the pots of soup to be = 5000 KD/yr.
They found that the indifference number of pots of soup = 1000 pots/yr
If the outside source charges 10 KD per pot of soup, how much does it cost Medro & Mariana to make each pot of soup?
They found that the indifference number of pots of soup = 1000 pots/yr
If the outside source charges 10 KD per pot of soup, how much does it cost Medro & Mariana to make each pot of soup?
a. 5 KD/pot
b. 8 KD/pot
c. 3.5 KD/pot
d. 6 KD/pot
e. none of the above
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