. Company A has fixed expenses of Php 15, 000 per year and reach unit of product has a Php0.002 variable cost.Company B has fixed expenses of Php5,000 per year and can produce the same product at a Php0.05 variable cost. At what number of units of annual production will Company A has the same total cost as Company B ?

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
Problem 7QAP
icon
Related questions
Question

3. Company A has fixed expenses of Php 15, 000 per year and reach unit of product has a Php0.002 variable cost.Company B has fixed expenses of Php5,000 per year and can produce the same product at a Php0.05 variable cost. At what number of units of annual production will Company A has the same total cost as Company B ?

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Property Damage
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK HEALTH ECONOMICS AND POLICY
EBK HEALTH ECONOMICS AND POLICY
Economics
ISBN:
9781337668279
Author:
Henderson
Publisher:
YUZU