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What reason would antitrust authorities

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Reference no: EM132417136

Suppose that the only two firms in an industry face the market(inverse) demand curve P = 130 -Q. Each has constant marginal cost equal to 10and no fixed costs. Initially the two firms compete as Cournot rivals and each produces an output of 40.

Why might these firms want to merge to form a monopoly?

What reason would antitrust authorities have for opposing the merger? (Calculate price, profits, and total surplus before and after the merger.)

Reference no: EM132417136

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