Process A has fixed costs of $2000 and variable costs of $40 per unit. Process B has fixed costs of $5000 and variable costs of $30 per unit. Which of the following statements is true?
The indifference point between process A and process B is approximately 300 units
It is impossible for one process to have both of its costs lower than those of another process
Process A is cheaper than process B at all volumes
Process B is cheaper than process A at all volumes
Process B is more profitable than process A and should be selected