Use the following information to answer the next FOURquestions: An oligopoly consists of four firms, each of which has a constant marginal cost of MC=10. The market demand curve is given by P=100-Q. 1. What is the Cournot equilibrium market price? $ _____________ 2. What is social surplus in the Cournot equilibrium? $ ______________ The four firms in the market are looking to improve operating margins by merging into a single firm so they can take advantage of economies of scale. Suppose that after the merger, market demand remains the same but the marginal cost of the merged firm falls to MC=5. 3. The merger results in a change in social surplus equal to (+/-) ____ $ ______________. 4. The merger results in profits of the merged firm being (smaller/larger) __________ than the combined profits of the four firms in the Cournot equilibrium