To examine the trade-off between market efficiency and market power from a merger, consider a market with two firms that sell identical products. firm 1 has a constant marginal cost of $1, and firm 2 has a constant marginal cost of $2. the market demand is q = 105 - p. note that partial differential pi_1/partial differential q_1 = [105 - 1(q_1 + q_2)] - 1q_1 - 1 = 0 and partial differential pi_2/partial differential q_2 = [105 - 1(q_1 + q_2)] - 1q_2 - 2 = 0. the cournot-nash equilibrium occurs where q_1 equals and q_2 equals (enter numeric responses using real numbers rounded to two decimal places.) market output is furthermore, the equilibrium occurs at a price of $

Suppose that the u. s. dollars-mexican pesos exchange rate is fixed by the u. s. and mexican governments. assume also that labor is mobile between the united states and mexico due to low transportation costs. which of the following situations is likely to happen as a result of a simultaneous increase in the demand for u. s. goods and decrease in the demand for mexican goods? (pick mexican unemployment rate increases, and the country undergoes bad economic times for a sustained u. s. unemployment rate increases, and the country undergoes bad economic times for a sustained mexican unemployment rate rises at first, but it soon drops as unemployed mexicans move to the united states for mexican unemployment rate rises at first, but then it drops as mexican pesos depreciate against u. s. dollars.