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Wendys and McDonalds, both fast food chains, are planning a merger. Assume that the synergy effect is smaller than the monopoly effect. Overall, the post-merger
Wendys and McDonalds, both fast food chains, are planning a merger. Assume that the synergy effect is smaller than the monopoly effect. Overall, the post-merger price ____________ and producer surplus ________.
- decreases ; can either increase or decrease
- increases; can either increase or decrease
- increases ; decreases
- increases ; increases
- decreases; increases
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