Suppose a duopoly in a market for homogeneous goods. The market demand and costs of the two firms, A and B, are given by: P = 144 50 Qt where Qt Qa + Qb
CTA = 47+ 26 Qa
CTb = 47+ 26 Qb
Assuming that the two companies announce a merger, and that there are no synergies or cost reductions with the transaction. What will be the market price after the merger?
