Series of mergers monopolizes

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The market demand in an industry is P= 200-Q. (Note: The answer to this question must be hand-written.)

A) The industry is currently performing competitively with price equal to marginal cost. If, LRMC=LRAC=10, what is the output and price?

B) Suppose a series of mergers monopolizes the industry and results in lower costs such that LRMC = LRAC = 5 (the demand stays the same). What are the industry output and price?

C) Does this merger improve the total welfare to society? Please show all your work for full credit.

Reference no: EM131255536

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