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If the firms in a Cournot duopoly merge forming a monopoly, the effect on price, profit, and other variables depends on the trade-off between efficiency and market power. The firms produce identical products. Firm 1 has a constant marginal cost of $1, and Firm 2 has a constant marginal cost of $2. The market demand is Q = 105 - p. The Cournot-Nash equilibrium occurs where q, equals 36 and q, equals 34 . (Enter numeric responses using real numbers rounded to two decimal places.) Furthermore, the equilibrium occurs at a price of $ 36 Firm 1 receives profit of $ 1225 and Firm 2 receives profit of $ 1156 Consumer surplus equals $ 2380.50 If the firms merge and produce at the lower marginal cost, then the new equilibrium occurs where market output (Q) is 52 The new equilibrium price is $ 53 The merged firm's profit is $ 2704 Consumer surplus is now $ 1352