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You Have an Opportunity to Invest in a New Plant

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You have an opportunity to invest in a new plant.The fixed costs are $100,000 per year.The marginal cost of production is $2 for a quantity up to 10,000 units per year.The marginal cost of production is $4 for a quantity between 10,001 and 30,000 units per year (an additional 20,000 units per year)and $10 for production above 30,000 per year.What is the break even quantity if the market is competitive and the market price is $8 per unit? Show all calculations.

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The first 10,000 units yield a contribut...

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