What forecast would you make for the merged firms

Reference no: EM13159877

In 1989, the Detroit Free Pressand Detroit Daily News(the only daily newspapers in the city) obtained permission to merge under a special exemption from the antitrust laws. The merged firm continued to publish 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' profits? 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?

Reference no: EM13159877

Questions Cloud

Analyze the forms of aid to developing nations : Analyze the forms of aid to developing nations and determine which have the greatest and least amount of impact on a country during a natural disaster.

Extent of the natural ecosystem : Ecosystems are often defined as a matter of convenience, because we can't study everything at once. How would you describe the character and extent of the natural ecosystem in which you live? What characteristics make your ecosystem an open system..

What mass of steam is required : The standard molar enthalpy of vaporization for water is 40.79 kJ/mol. What mass of steam is required to release 500. kJ of energy upon condensation? (Molar mass of water is 18.02 g/mol.)

Explain the implications of those classifications on tax : Explain the implications of those classifications on tax revenue collections when the per-unit tax increases as opposed to decreases.

What forecast would you make for the merged firms : What forecast would you make for the merged firms' profits and what explanation might there be for such a strategy? After the merger, what prediction would you make about advertising rates?

Define natural selection : Define natural selection. Whycan't natural selection be described as a "force" or working "for" something?

Compute the cost of goods sold and ending inventory : Compute the cost of goods sold and ending inventory, assume (1) is LIFO, LIFO cost flow (2) LIFO cost flow. And (3) weighted average.

How does gene flow influencethe effects of genetic drift : How does gene flow influencethe effects of genetic drift? Does selection counteract drift and gene flow? How do these interactions vary with populationsize? Discuss in reference to Endler's model presented in lecture.

Fair value of a held-to-maturity investment : If the fair value of a held-to-maturity investment declines for a reason that is viewed as "other than temporary" because the company intends to sell the investment:

User Account

All Pages