QUESTION 6 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 land owner there. At what fixed cost for Location B would Power Bright be indifferent to the choice of either of these two locations? a $50,000 b. $40,000 c. $20,000 d. $70,000 e. $10,000