Q. The Beta Corporation operates in an business that has a Herfindahl-Hirschman key of 800. Beta wants to combine with Alpha Enterprises, whereas Alpha has argued that the joining will be banned by the Justice Department. Is there any condition under which Justice Department would allow combination? Explain.

Add the marginal exterior costs to your illustration. Then calculate the full-cost provide curve also add that to your illustration. Consider that, in this case, we 1st add (marginal) costs, not quantities, since these are the costs associated with each t-shirt. Finally, use the full-cost supply curve and the demand curve to find the efficient price and quantity. Show these on your diagram.