Before the merger, each of the separate newspapers, Macroeconomics

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Before the merger, each of the separate newspapers

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?

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Macroeconomics: Before the merger, each of the separate newspapers

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Macroeconomics: Before the merger, each of the separate newspapers

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