Horizontal Merger The Following Questions Refer to the Accompanying Diagram, Which Shows

question 24

Multiple Choice

Horizontal Merger

The following questions refer to the accompanying diagram, which shows the effects of a horizontal merger. Before the merger, the firm behaves competitively producing Q0 and charging P0. The merger lowers the firm's marginal cost and gives the firm enough market power to switch to the monopoly equilibrium.


-Refer to Horizontal Merger.After the merger,producer's surplus is equal to

• A) area A + C + F.
• B) area C + D + F + G.
• C) area C + D + E - F - G.
• D) area C + D.

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