Determine the number of firms needed for the merger

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Reference no: EM13160519

Suppose there are 12 firms playing in a Cournot game with demand P(Q) = 200 - Q, each with identical cost function C(q) = 5q. If merging carried with it no cost advantage, determine the number of firms needed for the merger to be protable (i.e., so that the merged firm's profits divided by the number of firms that merged is greater than the sum of their profits pre-merger).

Reference no: EM13160519

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