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question 46

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Pastry Paradise is looking to expand.It decides to take over Sweet Tooth,a competitive firm.The two firms have similar technology but different costs.Pastry Paradise has $1500 fixed costs and $1 marginal cost per unit produced.Sweet Tooth has $500 fixed costs but $5 marginal cost per unit produced.
-​If Pastry Paradise takes over Sweet Tooth,at what level of production would it be indifferent between which technology is used.


Definitions:

Drag Factor

The pull of the road on the tires; it is a number that represents the amount of friction that the road surface contributes when driving.

Yaw Mark

Curved tire marks that indicate the vehicle was slipping sideways while at the same time continuing in a forward motion.

Depreciate

Decrease in value over time.

Outliers

Data points that differ significantly from the majority of a data set, often indicating a measurement error or a different population.

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