economics

posted by .

In 1989, the Detroit Free Press and 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?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Busniess Law

    Robinson, a college football player, signed a contract on December 2 with the Detroit Lions, a pro football club. The contract was a standard form that contained a clause stating, "This agreement shall become valid and binding upon …
  2. government

    what would be your BEST advice to a person who wants to learn more about political issues?
  3. 7th grade

    Almost everyone at the Bright Corporation reads a daily newspaper on a regular basis. In fact, altogether te company employs 2,940 people,of whom70% read The Daily News,45% read The Courier and 60% read The inquirer. One fourth of …
  4. accounting

    A city is served by two newspapers—the Tribune and the Daily News. Each Sunday reader purchases one of the newspapers at a stand. The following transition matrix contains the probabilities of a customer’s buying a particular newspaper …
  5. math

    Almost everyone at the Bright Corporation reads a daily newspaper on a regular basis. In fact, altogether te company employs 2,940 people,of whom70% read The Daily News,45% read The Courier and 60% read The inquirer. One fourth of …
  6. statistics

    Suppose that we want to test the claim that the majority (> 50% ) of UOB students read newspapers on a daily basis. We sampled 70 students and found out that 42 of them read newspapers on a daily basis?
  7. Statistics

    *Give all probabilities to two decimal places. Three daily newspapers are published in a large city. Suppose we have the following facts about the people in the city: 60% read Newspaper A. 34% read Newspaper C. 72% read Newspaper A …
  8. accounting

    A city is served by two newspapers—the Tribune and the Daily News. Each Sunday reader purchases one of the newspapers at a stand. The following transition matrix contains the probabilities of a customer’s buying a particular newspaper …
  9. math

    a city is served by two newspapers-the Tribune and the Daily News. Each Sunday a reader purchases one of the newspapers at a stand. The following transition matrix contains the probabilities of a customers buying a particular newspaper …
  10. probability

    A survey asks people about their reading habits with respect to three newspapers. The results show that 56% read newspaper A, 33% read newspaper B, and 27% read newspapers C. 7% of the respondents read newspapers A and B, 8% of the …

More Similar Questions