Imagine that a friend asks you whether or not you should start a washing machine business. For this, it provides you with the following information which is 100% accurate. Price of washing machines: $300,000 Unit variable cost of washing machines: $150,000 Annual fixed cost: $20,000,000 Furthermore, it is known that the annual sale of washing machines will be equal to 100 units. Based on the above information: Do you recommend your friend carry out the business? Yes, since there are positive utilities No, since the profits are negative
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