Consider a firm with constant marginal cost that behaves competitively.A horizontal merger lowers the firm's marginal cost and causes the firm to behave like a monopoly.How does the merger affect producer's surplus,consumers' surplus,and social gain? Explain.

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The Answer of Consider a firm with constant marginal cost that behaves competitively.A horizontal merger lowers the firm's marginal cost and causes the firm to behave like a monopoly.How does the merger affect producer's surplus,consumers' surplus,and social gain? Explain.

Consider a Firm with Constant Marginal Cost That Behaves Competitively