Question: A firm is considering three capacity alternatives: A , B , and C . Alternative A would have an annual fixed cost of $ 1
A firm is considering three capacity alternatives: A B and C Alternative A would have an annual fixed cost of $ and variable costs of $ per unit. Alternative B would have annual fixed costs of $ and variable costs of $ per unit. Alternative C would have fixed costs of $ and variable costs of $ per unit. Revenue is expected to be $ per unit. Which alternative will produce the highest profits for an annual output of units?
a Alternative B
b Alternative
c Alternative C
d A and
e B and C
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