Answer Happy

HANDWRITTING STEP-BY-STEP PLEASE
There are 5 firms in an industry that compete by setting quantities simultaneously. Every firm has an identical constant marginal cost of $10 and no fixed costs. Market demand is given by P = 250-4(9₁ +9₂ + • 95). i. Suppose Firms 1 and 2 are considering merging into a single firm. So, post-merger, Firms 1 and 2 would be replaced by a single firm that has a constant marginal cost of $10 and no fixed costs. You have been hired by Firms 1 and 2 as a consultant. Use the Cournot model to give advice on the profitability of this merger.