Company E is trying to decide whether to buy a new technology machine for use in its production. In the case of purchasing the new machine, the annual fixed costs of the enterprise will increase from 1, 520, 000 TL additionally plus 90, 000 TL, but the unit variable cost will decrease from 36 TL to 24 TL. In case the business decides to renew (buy decision) the machinery, which of the following will be the profit function? a. K= 24 x-1, 610,000 b. K= 36 x 1,610, 000 c. K = 1,610, 000 - 24x d. K = 1,610, 000 + 36x

Company E is trying to decide whether to buy a new technology machine for use in its production. In the case of purchasing the new machine, the annual fixed costs of the enterprise will increase from 1, 520, 000 TL additionally plus 90, 000 TL, but the unit variable cost will decrease from 36 TL to 24 TL. In case the business decides to renew (buy decision) the machinery, which of the following will be the profit function? a. K= 24 x-1, 610,000 b. K= 36 x 1,610, 000 c. K = 1,610, 000 - 24x d. K = 1,610, 000 + 36x

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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