Suppose there are two types of technology: Technology A allows a firm to produce with variable cost
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while technology B allows a firm to produce with variable cost
Technologies A and B are incompatible, that is, a firm can operate with A or B, but not both simultaneously. Technology B is free. Technology A can be acquired at a cost F. If the price of the firm's output is P = 1, for what values of F should the firm choose technology A?
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