Answered>Order 5397
Merger with cost synergie) Suppose the demand for widgets is p(Q) = 100 – Q. Initially there are two firms producinwidgets, each with cost functioC(q) = 40q, and these firm engage in Cournot quantity cmpetition. Now suppose these two firms propose to merge so as to reduce their marginal costs by 0<?. In other words, […]