Question: Two different firms manufacture same product, each with the same cost of $3 dollars per unit of production, and with the same maximum production of

Two different firms manufacture same product, each with the same cost of $3 dollars per unit of production, and with the same maximum production of 1,000,000 units. If merged, the aggregate firm would be able to reduce the production costs to $2 per unit of production. Assume a discount rate of 10% and production in perpetuity. What is the value of the synergy

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