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Economists are often asked to help the Department of Justice evaluate the costs and benefits of mergers. This problem walks you through two rudimentary merger

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Economists are often asked to help the Department of Justice evaluate the costs and benefits of mergers. This problem walks you through two rudimentary merger analyses. Consider a market where two firms engage in Cournot competition. They face inverse industry demand curve P = 25 - -Q. The firms each face a marginal cost of $1. What is the equilibrium price under Cournot competition? How much does each firm produce? 9A =

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