(If you have answered this question, please do not answer it again because I want to hear more explanations from different tutors. Thanks!)

Please help to solve this question.

I submitted the answer "30 , 20, 1050, 1500" but it showed that I could only get 1 mark, the question is 2 marks, which means that half of my answer is wrong.

Please show the detailed steps.

Thanks!

Part A: Cournot model 1. Fill in the blanks (2 marks) Two Cournot duopolists produce in a market with market inverse demand P = 100 - q1 - 92. The total cost of firm 1 is 100 + 20q1. The total cost of firm 2 is 150 + 30q2. The two firms want to merge (and become a monopolist). They argue for the merger on the grounds that (i) the marginal production costs would fall to 20 for all units of output after the merger because all quantities will be produced by the more cost-efficient firm 1; and (ii) the merger would save the fixed cost for operating the less cost- efficient firm 2. (a) Calculate the pre-merger equilibrium quantities: 91 =1 - 92 = 2 (b) Calculate the pre-merger total surplus:_ 3 (remember to consider fixed costs). (c) Calculate the post-merger total surplus: 4 (remember to consider fixed costs). Enter the correct answer below. Please enter a number for this text box. 2 Please enter a number for this text box. 3 Please enter a number for this text box. 4 Please enter a number for this text box