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Tangi Industrial is looking to expand. It decides to take over Hammond Tech, a competitive firm. The two firms have similar technology but different costs.
Tangi Industrial is looking to expand. It decides to take over Hammond Tech, a competitive firm. The two firms have similar technology but different costs. Tangi Industrial has $1500 fixed costs and $1 marginal cost per unit produced. Hammond Tech has $500 fixed costs but $5 marginal cost per unit produced. What is the total cost, at the level of production where Tangi Industrial is indifferent between which technology is used
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