Chapter 11: Answers to Questions and Problems
The profit-maximizing price when three firms compete is P= 3 -1.3 1+3 -1.3 16.20 =$21.79 per liter. If two of the three firms were unconditionally permitted to merge, then the profit-maximizing price is P= 2 -1.3 1+2 -1.3 16.20 =$26.33 per liter. Given the circumstances, it is not surprising that the EU raised concerns about a proposed merger ... ................
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