For example there are 3 (three) companies that produce goods kind of in a market. Then the market demand is known is P = 200 - Q, where Q represents the total output of third company; and suppose the marginal cost is known from each company is $ 40.

- If each company behaves as Cournot Competitors, specify the level of output, price, and profit of each company!

- If two of the companies (Company-1 and Company-2) do merger, so that now there are only 2 (two) companies on the market, determine the level of output, price, and profit of each new company the!

- By comparing results a) and b), what do you think are the mergers? Is it profitable and will it happen? Tell!