W * 30313 - ECON 710 ' M50 _ VAMSI JALADl 12/05/23 9:44 PM (13 This test: 100 point(s) possible ( Question 2 0f 9 ) This question: 20 point(s) possible () Submit test ll the firms in a Cournot duopoly merge forming a monopoly' the effect on price, profit, and other variables depends on the tradeoff between effrcrency and market power The firms produce Identical products. '6 Firm 1 has a constant marginal cost 0t 53' and Firm 2 has a constant marginal cost of $6 The market demand l5 Q = 105 - p The CournotrNash equrlibrrum occurs where Q1 equals Ti and (:2 equals [ \\ (Enter numeric responses usmg real numbers rounded lo (we decrmal places) 7 7 NY Furthermore the equilibrium occurs at a price of SK'r Firm 1 receives prolrt of $E and Firm 2 receives profit of $ Consumer surplus equals 3D lithe firms merge and produce at the lower margrnal cost then the how equilibrium occurs whore market output (Q) is m The new equrlibrium price |S 5D, The merged rm's prot is 19:\". Consumer surplus is now 3 l