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Bayside Equipment Is Considering Buying New Equipment

Question 3

Multiple Choice

Bayside Equipment is considering buying new equipment. The existing machine produces 10 000 units a day at a cost of $2 per unit. The new machine will produce 15 000 at a cost of $1.50 a unit. BAyside sells each unit for $4. What is the marginal benefit of the new machine


A) $7 500
B) $20 000
C) $22 500
D) $38 500

Correct Answer:

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