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Consider a market with 4 Cournot firms producing a homogeneous product. Suppose that two of these firms merge. Under what condition(s) does a horizontal merge
Consider a market with 4 Cournot firms producing a homogeneous product. Suppose that two of these firms merge. Under what condition(s) does a horizontal merge lead to a reduction in price? a) When firms with identical fixed and marginal costs merge. b) When firms with different fixed costs but identical marginal costs merge. c) When firms with identical fixed costs but different marginal costs merge. d) Both (a) and (b). e) None of the above
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