How do the equilibrium values changes

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Assume now that Firm1 has a constant marginal cost of 1 and Firm 2 has a constant marginal cost of 2. the new market demand is: Q = 15-P.

1) Solve for the Cournot equilibrium price, quantities, profits and consumer surplus

2) If the firms merge and produce at the lower marginal cost, how do the equilibrium values changes?

Reference no: EM131165964

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