An organization is contemplating buying a new piece of machinery that can increase fixed cost and reduce variable cost. The buying of the new machine will make the break-even output: a. Lower b. Higher. c. Remain the same d. The effect will be ambiguous. (draw a diagram to explain your answer):

Microeconomics: Private and Public Choice (MindTap Course List)
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Chapter8: Costs And The Supply Of Goods
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An organization is contemplating buying a new piece of machinery that can increase fixed cost and reduce variable cost.
The buying of the new machine will make the break-even output:

a. Lower

b. Higher.

c. Remain the same

d. The effect will be ambiguous.

(draw a diagram to explain your answer):

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