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In 1989, the Detroit Free Press and Detroit Daily News the only daily newspapers in the city obtained permission to merge under a special exemption from the antitrust laws. The merged firm continued to publish the two newspapers but was operated as a single entity.
a. Before the merger, each of the separate newspapers was losing about $10 million per year. What forecast would you make for the merged firms’ profits? Explain.
b. . Before the merger, each newspaper cut advertising rates substantially. What explanation might there be for such a strategy? After the merger, what prediction would you make about advertising rates?
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A monopoly with a more elastic demand curve will have more market power and monopolist can earn positive profits in the long run because it has market power
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For each of the following utility functions, draw the three indierence curves that correspond to the three stated utility levels, labeling each curve with the corresponding utility level. Label any intercepts or inks in the line to fully identify ..
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VMIC Corporation has asked you to look at the following data. The interest rate is 10 percent.
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"we oppose a nationsl market for pollution rights, as this would put an undue burden on low-income households who would no longer be able to afford to drive cars or heat their homes. instead, we propose that large corporations be required to reduc..
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