Business, 05.02.2020 03:57 spotty2093
Suppose that the only two firms in an industry face the market (inverse) demand curve pequals130minusq. each has constant marginal cost equal to 4 and no fixed costs. initially the two firms compete as cournot rivals (chapter 11) and each produces an output of 42. why might these firms want to merge to form a monopoly? what reason would antitrust authorities have for opposing the merger? (hint: calculate price, profits, and total surplus before and after the merger.)
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Specialization—the division of labor—enhances productivity and efficiency by a) allowing workers to take advantage of existing differences in their abilities and skills. b) avoiding the time loss involved in shifting from one production task to another. c) allowing workers to develop skills by working on one, or a limited number, of tasks. d)all of the means identified in the other answers.
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Suppose that the only two firms in an industry face the market (inverse) demand curve pequals130minu...
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