PowerBright must decide between two locations on which to build a new power station to provide 60
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PowerBright must decide between two locations on which to build a new power station to provide 60 megawatt-hours of electricity a month. Location A would have a variable cost of \($1,000\) per megawatt-hour and location B would have a variable cost of \($1,500\) per megawatt-hour. A power station at location A would also require a fixed cost of \($50,000\) a month, although an estimate of the monthly fixed cost at location B has not been made available yet, due to ongoing negotiations with a landowner there. At what fixed cost for location B would PowerBright be indifferent to the choice of either of these two locations?
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