premerger and postmerger, English

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?

Posted Date: 3/19/2013 3:50:00 AM | Location : United States

Related Discussions:- premerger and postmerger, Assignment Help, Ask Question on premerger and postmerger, Get Answer, Expert's Help, premerger and postmerger Discussions

Write discussion on premerger and postmerger
Your posts are moderated
Related Questions
What is a Prepositional Phrase? What is a phrase? A phrase is a group of words working together in a sentence to perform one function. In the sections on verbs, you may have r

state the distinguishing features of literary writing by citing examples and discussing them

Critically analyse and answer the following questions: 1. Outline the main theories that attempt to explain the nature of corporations 2. Discuss corporate governance issues

distinguishing features of literature as a mode of language?

Reema:Where''s my book Its reported speech should be "Reema said that where her book was or where was her book" and why

The following quote is taken from "Walking with Cavemen". Unlike monkeys and apes, whose infants are able to move around independently soon after they are born, humans give birt

Please describe the similarities and differences between the protagonists of Kate Chopin’s short stories “The Story of an Hour” and “The Storm.” Please include a clear thesis stat

You wish to develop a project to provide facilities for high school boys who have dropped-out of school. Put together a project proposal for presentation to your company or institu

What's a sentence fragment? A sentence fragment is an incomplete sentence. The most frequent type of sentence fragment error occurs when a writer attempts to use a subordina