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
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Chapter1: Making Economics Decisions
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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
Transcribed Image Text: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
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