Sarah's machinery company is deciding to dump its current technology a for a new technology b with smaller fixed costs but bigger mcs. the current technology has fixed costs of $500 and mcs of $50 whereas the new technology has fixed costs of $250 and marginal costs of $100. at what quantity is sarah's machinery company indifferent between two technologies?

The quantity that Sarah's Machinery Company is indifferent between two technologies is 5.

Explanation:

We are looking for the quantity that Sarah's Machinery Company is  indifferent between two technologies,  so we have to find the quantity that the total cost with technology A is the same to the total cost with technology B

Total cost  technology A=500+50x

Total cost  technology B=250+100x

500+50x=250+100x

500-250=100x-50x

250=50x

x=250/50=5

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