A brewery is considering two potential production investments: Option A costs an initial $2 million
Question: A brewery is considering two potential production investments: Option A costs an initial $2 million and will involve constant marginal cost of $5. Option B costs an initial $4 million and will involve constant marginal cost of $3. In order to make the calculations simple, assume that the annual capital cost is 10% of the total investment. At what production quantity per year would the brewery be indifferent between these two investment opportunities? (1 point)
Price: $2.99
Answer: The solution consists of 1 page
Deliverables: Word Document![](/images/msword.png)
Deliverables: Word Document
![](/images/msword.png)