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Author Question: What are the total profits if four units are produced? a. 40. b. 70. c. -30. d. ... (Read 23 times)

lak

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on: Jul 1, 2018
What are the total profits if four units are produced?
 a. 40.
 b. 70.
 c. -30.
  d. 20.

Question 2

Wine Merger In October, 2014, Vintners Global Resource's (VGR) agreed to purchase M.A. Silva. VGR is a leading manufacturer of glass bottles and packaging for wines and M.A. Silva is a manufacturer of premium natural corks. What is the expected effect of this merger on price-cost margins?


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janeli1

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Reply #1 on: Jul 1, 2018
Answer to Question 1

d

Answer to Question 2

These two companies' products are complements for each other. A price decrease for one company would lower the cost of the final product, a bottle of wine, increasing the quantity demanded and so benefit the other. Before the merger, the second effect would not have been captured by the firm reducing prices. After the merger, it would. Therefore it is more willing to reduce prices.


lak

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Reply 2 on: Jul 1, 2018
Gracias!

strudel15

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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