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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. If the company plans to produce 5000 units of output, is using the competitor's technology a good idea
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