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URGENT! THANK YOU IN ADVANCE The following figure illustrates the marginal cost (MC) curves of two firms operating in the same industry. The marginal cost

URGENT! THANK YOU IN ADVANCE
The following figure illustrates the marginal cost (MC) curves of two firms operating in the same industry. The marginal cost of Firm B is higher than the marginal cost of Firm A. Firm A Firm B MC Cost Cost ATC 35 ATC 35 25 25 P = 15 P = 15 40 50 60 Quantity 0 20 3040 Quantity a) What is the optimal output of each firm if the market price is $15? The government decides to shut down Firm B, as it has a higher marginal cost than Firm A. If it does so and asks Firm A to produce the combined output of firms A and B, will production be efficient? Evplain

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