premerger and postmerger, English

Assignment Help:

In a 3-firm oligopoly, market demand is given by Q=100-P. Every firm's constant marginal cost is 40 and the firms compete with quantities. Suppose that two of the firms merge.

a)    Measure premerger and postmerger profits for the firms. Is the merger profitable?

b)    Suppose that the merger changes the marginal cost of production. What must the marginal cost be postmerger, in order for the merger to be exactly profit-neutral?

c)    Comment on how reasonable Cournot models of this type are to analyze horizontal mergers? If we see mergers in markets where we have good reason to think that competition is in quantities, what should we finish?


Related Discussions:- premerger and postmerger

Quick question, what the differences between roof trusses and bridge trusse...

what the differences between roof trusses and bridge trusses ?

Visual Representation for Poem, I need a visual representation for this poe...

I need a visual representation for this poem I wrote Stagnant air fills the battlefield, Weak rays of sunlight penetrate the clouds, Gun shots pollute the air. BANG! BANG! Bodies

Assignment on passages, Determine whether each of the following passages is...

Determine whether each of the following passages is an explanation, an argument, or neither, and give reasons for your answer. (i) It is much easier to buy the Melbourne Age

Climate change, how climate change is affecting the world?

how climate change is affecting the world?

Ms, please live comment michelle

please live comment michelle

What is historical background to understand shakespeare play, What is histo...

What is historical background to understand Shakespeare play? Shakespeare was part of the European Renaissance—a cultural "rebirth" where scholars throughout Europe rediscovere

Effective transitions within and between paragraphs, Employ Effective Trans...

Employ Effective Transitions Within and Between Paragraphs 1. Transitions Within Paragraphs : Sentences in a paragraph can be organized in many ways. Chronological order--the

Possisive pronouns, what is the different between your and yours?

what is the different between your and yours?

Explain past participles, Explain Past Participles The past participles a...

Explain Past Participles The past participles are often the most difficult of the forms to learn. If you have been speaking English most of your life, you know the past participl

What do you know of robert''s life as a boy, Question 1 What are some of t...

Question 1 What are some of the superstitions that the people in the story believe in? Question 2 How does Mike use Rosie to broach the subject of women's emancipation? Q

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd