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In 1989, Detroit Free Press and Detroit Daily News obtained authorization to combine under a special exemption from the antitrust laws. The merged firm continued to public the two newspapers but was operated as a single entity.
A) Before the merger, each of the separate newspapers was losing about $10 million per year. What forecast would you make for the merged firms' projects? Explain.
B) Before the merger, each newspaper cut advertising rates substantially. What explanation might there be for such a strategy? After the merger, what prediction would you make about advertising rates?
MGMT 3306: Solve the assignment problems, 1. Please answer the assignment questions in this docx file and save once you’re satisfied. Assignment 3covers the lectures slides for Week 6.
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