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There are two companies in the market. Firm A has the advantage of being able to select profit - maximizing output before firm B .
There are two companies in the market. Firm A has the advantage of being able to select profitmaximizing output before firm B The inverse demand function of the market is P Q And firm As cost function is CaQa and firm Bs cost function is CbQb
Instead of considering antitrust matters, explain whether it would be beneficial if Firm A and Firm B merged. If it would not be beneficial, give why and specifically give how much it would be beneficial if it would be beneficial.
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