What are total costs-price revenues-profits for each firm

Assignment Help Business Economics

Reference no: EM131098496

Two physical therapy firms want to merge. The price elasticity of demand for physical therapy is -.40. Firm A has a volume of 10,400, Fixed cost of $50,000 marginal cost of $20 and a market share of 8%. Firm B has a volume of 15,600, Fixed cost of $60,000, marginal cost of $20 and a market share of 12%. The merged firm has a volume of $26,000 fixed cost of $100,000 marginal cost of $20 and market share of 20%. a. What are the total costs, price revenues and profits for each frim and for the merged firm? b. How does the merger affect markups and profits?

Reference no: EM131098496

Questions Cloud

Which of the following statements about a tariff is true : A tariff increases consumer surplus, decreases producer surplus, increases revenue to the government, and increases total surplus.

What caused the relation between the CEO and the stockholder : What is the R-square of the regression - Can you forecast (predict) what happens to the average price of a house if the number of bedrooms increases from 3 to 4 (keeping everything else constant)?

Total costs as function of input prices and output : Using the same production function as in question 4 {ie: q = (K^1/2 + L^1/2)^2} suppose that the firm is now operating in the long-run. Solve for the long-run cost function (i.e. total costs as a function of input prices and output).

Which of the following statements about a tariff is true : A tariff increases consumer surplus, decreases producer surplus, increases revenue to the government, and increases total surplus.

What are total costs-price revenues-profits for each firm : Two physical therapy firms want to merge. The price elasticity of demand for physical therapy is -.40. Firm A has a volume of 10,400, Fixed cost of $50,000 marginal cost of $20 and a market share of 8%. How does the merger affect markups and profits?..

What price does this firm charge its customers : A firm has $1,800,000 in sales, a Lerner index of 0.69, and a marginal cost of $35, and competes against 1000 other firms in its relevant market. What price does this firm charge its customers?

John kotter eight-step method : According to John Kotter's eight-step method for leading change, which of the following would be the next step taken by Harry?

Analyze importance of working collaboratively with diverse : In 500 words, analyze the importance of working collaboratively with diverse communities and constituencies (e.g., researchers, practitioners, agencies, and organizations) within the field of public health. Provide at least 2 examples.

Implementing a new performance analysis : Harry is a senior manager at Pine and Acorn Consultancy. He has been given the responsibility of introducing and implementing a new performance analysis system for Pine and Acorn's consultants.

User Account

All Pages