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Firm 1 and 2 are identical and the only soybean company in the market
Firm 1 and 2 are identical and the only soybean company in the market.Each firm has a cost function given by: C(q) = 10q + q², where q is Soybean produced. Total market demand is P = 100 - 3Q, where Q = q1 + q2 is total output. If the two firms were to merge and behave as a monopolist. What will be the equilibrium quantity for this new firm? What is the market price? (Hint: Consider the fact that cost and marginal cost are increasing in q when calculating a cost function for the merged firm.)
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