Question: Draw a graph like Figure 15.6 on page 518 that shows a merger lowering costs. On your graph, show producer surplus and consumer surplus before

Draw a graph like Figure 15.6 on page 518 that shows a merger lowering costs. On your graph, show producer surplus and consumer surplus before a merger and consumer surplus and producer surplus after a merger.

Price MC before the merger Merger with no efficiency gains MC after the merger Merger with efficiency gains PM Pc Рме

Price MC before the merger Merger with no efficiency gains MC after the merger Merger with efficiency gains PM Pc Demand MR Quantity Qc QMerge QM

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