Find how does the acquisition affect x s annual profit, Macroeconomics

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Find how does the acquisition affect x s annual profit

Problem

Recovering the Acquisition Cost. The long-run average cost of production is constant at $6 per unit. Suppose firm X acquires Y at a cost of $24 million and increases the price to $14. At the new price, X sells 1.5 million units per year.

a. How does the acquisition affect X s annual profit?

b. How many years will it take for X to recover the cost of acquiring Y?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Find how does the acquisition affect x s annual profit

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