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Two physical therapy firms want to merge. The price elasticity of demand for physical therapy is -0.40. Firm A has a volume of 10,400, fixed costs of $50,000, marginal costs of $20, and a market share of 8%. Firm B has a volume of 15,600, fixed costs of $60,000, marginal costs of $20, and a market share of 12%. The merged firm has a volume of 26,000, fixed costs of $100,000, marginal costs of $20, and a market share of 20%. a. What are the total costs, prices, revenues, and profits for each firm and for he merged firm? b. How does the merger affect markups and profits?
For this case read the article below concerning connecting the factory floor to the intranet/internet. This seems to be an effective way to manage an organization's inventory.
Mac has bequeathed his spaceship Serenity to his second in command, Zoe, upon his death. Zoe knows that Mac's weekly hairbreadth escapes from mortal danger cannot continue forever, and she estimates he has six years to live. Given that Serenity is no..
In a monopolistically competitive market, the rule for maximizing profit is to set MR=MC, which means. Perfect competition displays________________________ because the social benefits of additional production, as measured by the price that people are..
Which of the following is the proper value to use as the "first cost" of the defender in a replacement analysis? The rate of return on an investment is the interest rate that is earned on the: Given an annual interest rate of 10%, when continuous com..
What is the lowest price John can offer for this contract?
In tight housing markets rent controls are often applied to hold price of housing to a reasonable level. How does this policy affect the relative gains of tenants and landlords and the allocative function of prices— (answers) it prevents landlords fr..
Discuss and post what solution might there be for these people who lack access to computers. Recalling that the definition of perfect competition refers to a market with many buyers, among other factors, thus, how may these people gain access to the ..
Explain how does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil.
The US government decides to reduce the government budget deficit by increasing taxes and keeping government expenditures at the existing level. What are the effects of increasing taxes in the short and medium run for the US economy? Is it possible t..
Unemployment according to Marx could be classified as what type of unemployment?
”Most commercial fish species in nearly every ocean and sea are being rapidly depleted in what marine biologists and other specialists warn is evolving into one of the worst ecological disasters of modern times. According to the United Nations, the w..
A corporation just issued a 10 year, zero coupon bonds having a YTM of 10%. Under current tax law, how much interest can the corporation deduct in the first year?
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