Reference no: EM132945509

Question - Two clinics want to merge the price elasticity of demand is-02.0 and each clinic has fixed costs of $60,000 one clinic has a volume of 7,200 marginal cost of $60 and a market share of 2 percent, the other clinic has a volume of 10.800 marginal costs of $ 60 and a market share of 4 percent, the merged firm would have a volume of 18,000 fixed costs of $80,000 marginal cost of $60 and a market share of 6 percent. What are the total cost, revenues and profits for each clinic?