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 variab$1$e cost of $$1,500$ per megawatt hour. A

power station at Location A would a$1$so require a fixed cost of $$50,000$ a

month, a$1$though an estimate of the month$1$y fixed cost at Location B has

not been made availab$1$e yet, due to ongoing negotiations with a land owner

there. Please answer the following two questions, based on this

information.

a$.)$ At what fixed cost for Location B wou$1$d PowerBright be indifferent

to the choice of either of these two $1$ocations?

b$.)$ Suppose PowerBright just learned from its negotiating team that the

price the land owner at Location $B$ is insisting on would result in fixed

costs of $$30,000$ a month. Given that PowerBright makes a $1$ ogical decision

for the location of the new power station, what will that power station's

tota$1$ month$1$y operating costs be$?$ Please solve and explain how you found the answers