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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 profit-maximizing output before firm B. The inverse demand function of the market is P = 500-2Q. And firm A's cost function is C(a) = 2Qa, and firm B's cost function is C(b) = 4Qb.

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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