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Demand is q = 100 - p. Average cost pre-merger, AC0 = $50; average cost post-merger is AC1 = 44. The pre-merger price is p0

Demand is q = 100 - p. Average cost pre-merger, AC0 = $50; average cost post-merger is AC1 = 44. The pre-merger price is p0 = $50. Assume that the post-merger price, p1 is $70 a. Calculate the value of the deadweight loss, the lightly shaded area b. Calculate the value of the cost savings created by the merger, the dark shaded area. c. Should the merger be allowed? What qualifications should be considered

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