Suppose that the only two firms in an industry face the market (inverse) demand curve pequals130minusq. each has constant marginal cost equal to 4 and no fixed costs. initially the two firms compete as cournot rivals (chapter 11) and each produces an output of 42. why might these firms want to merge to form a monopoly? what reason would antitrust authorities have for opposing the merger? (hint: calculate price, profits, and total surplus before and after the merger.)

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan