Doubt

[Halflife]

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[Halflife]

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[happy]

Nash Equilibrium is neither necessary nor sufficient for Pareto efficient outcome.
For example, Consider prisoner dilemma.

In this question if both firm merges total profit of the industry increase, hence each firm profit increase.

[Halflife]

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[Asd1995]

A qualitative assesment can be given in the sense that both firm's competitiveness leads to this equilibrium. If both firms agree to charge a higher price their profits will increase, but either firm can cut prices a little and capture more market. Hence this isn't a pareto optimal situation in the sense that both firms can be better off, but their competitiveness does not allow them to do so.