market demand is Q = 28 - 2P + s

;where Q is quantity demanded, P is price, and s is an index of service quality.

production functionis Q = x [K + 1/2L]

x =5/4, r = 10 , w = 5, and the service quality index is s = 12.

Suppose that the market is a monopoly following a merge between two companies. s is constant.

Calculate and find out if the merger should proceed? Provide economic analysis