Business, 05.12.2019 04:31 miafava8

Suppose the european union (eu) is investigating a proposed merger between two of the largest distillers of premium scotch liquor. based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market. additionally, suppose that the (wholesale) market elasticity of demand for scotch liquor is –1.3 and that it costs $16.20 to produce and distribute each liter of scotch. based only on these data, provide quantitative estimates of the likely pre- and postmerger prices in the wholesale market for premium scotch liquor. instruction: do not round intermediate calculations. enter your final responses rounded to the nearest penny (two decimal places).

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Suppose the european union (eu) is investigating a proposed merger between two of the largest distil...

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