How does the merger affect markups and profits?

Two physical therapy firms want to merge. The price elasticity of demand for physical therapy is -0. Show more Two physical therapy firms want to merge. The price elasticity of demand for physical therapy is -0.40. Firm A has a volume of 10400 fixed costs of $50000 marginal costs of $20 and a market share of 8%. Firm B has a volume of 15600 fixed costs of $60000 marginal costs of $20 and a market share of 12%. The merged firm has a volume of 26000 fixed costs of $100000 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? Show less

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