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Business, 05.02.2020 03:57 spotty2093

Suppose that the only two firms in an industry face the market (inverse) demand curve pequals130minusq. each has constant marginal cost equal to 4 and no fixed costs. initially the two firms compete as cournot rivals (chapter 11) and each produces an output of 42. why might these firms want to merge to form a monopoly? what reason would antitrust authorities have for opposing the merger? (hint: calculate price, profits, and total surplus before and after the merger.)

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