Could you answer this question( in two pages) Your company has just acquired another company which has locations in Quebec and Paris.
October 14, 2020
ECONOMICS- Case
October 14, 2020
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Firm A in Industry A has marginal cost of production equal to $150 and experience has shown Firm A that their Lerner index is 0.

Firm A in Industry A has marginal cost of production equal to $150 and experience has shown Firm A that their Lerner index is 0.35

Firm B in Industry B has a MC of production equal to $25 and historical experience indicates their Lerner index is 0.6

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a)      What is the optimal price each firm should charge?

b)     Which firm is more likely to earn greater profits in the long run? Why?

 

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