2) Consider the following potential merger. Firm A sells its product for $100 and has marginal cost of $60 and sells a quantity of 100 units. Firm B sells its product for $80 and has marginal cost of $40 and sells a
quantity of 100 units. Cross price elasticity is 0.5. Calculate the value of diverted sales expected if these
firms merge. What is the GUPPI? Is this merger likely to receive additional scrutiny for potential
unilateral effects? If the merger is likely to generate efficiencies, give an example of potential cost
savings significant enough to alleviate concerns of unilateral price effect. (10 possible points)

step-by-step explanation:

what is the figure? attach a picture.

hello! just here for points! though i wish i knew!

proportions are fractions that equal to each other. so if two fractions are the same, they are proportional.

let's check the answers to see if they are proportional.

question a is not proportional because you can't turn 1.5/3 to 3/9. if you try to multiply 1.5/3 by 2 or 3, you wont get 3/9. it's impossible to make the fractions the same.

question b is not proportional because you can't turn 22/33 to 4/6. 33 can't go into 6.

question c is proportional because when you multiply 2 and 3 by 71, you would get 142/213, and those fractions equal to each other

question d is proportional because when you divide 14 and 7 by 2, you would end up with 7/3.5, and those fractions equal to each other.

answer: need a picture

step-by-step explanation: