The business activities of Firm A confer positive externalities on Firm B, and the business activities of Firm B confer positive externalities on Firm A. If the two firms merged, then
a. total surplus in their respective markets would decrease.
b. their respective markets would move further away from the social optimum G
c. the merger would serve as an example of a misguided public policy toward externalities.
d. their respective markets would move closer to the social optimum.
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