Merowak missiles is proposing to develop its next generation democratizer offensive weapon system ii (dows ii) for the us military. it expects to have to sink $1 billion into r& d and design, spend $0.5 billion building the tools and production facility that are unique to dows ii production. it houses these in standard factory floor space that is not unique to dows ii production (and so could be used for whatever purpose). the floor space costs $1 million. each missile has a marginal cost of $2,000. the pentagon is considering ordering 1 million of these missiles. what is the average cost per missile that merowak could bid for the contract?