Question: Suppose the two ERs from the previous problem propose to merge and form one ER system. The new ER system would be able to access

Suppose the two ERs from the previous problem propose to merge and form one ER system. The new ER system would be able to access the equipment from University ER, meaning the marginal cost of the new firm would becu= 60.

1. What quantity does the merged ER choose to supply?

2. What is the price after the merger?

3. What are the profits after the merger?

4. Are consumers better off or worse off following the merger? Why?

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