Two physical therapy firms want to merge. The price elasticity of demand for physical therapy is -.40. Firm A has a volume of 10,400, Fixed cost of $50,000 marginal cost of $20 and a market share of 8%. Firm B has a volume of 15,600, Fixed cost of $60,000, marginal cost of $20 and a market share of 12%. The merged firm has a volume of $26,000 fixed cost of $100,000 marginal cost of $20 and market share of 20%. a. What are the total costs, price revenues and profits for each frim and for the merged firm? b. How does the merger affect markups and profits?