Ch11Q11

Suppose the European Union (EU) was investlgated and proposed a merger between two of the largest distillers of premium Scotch licoor Aased on some pconomist's definition of the relevant market the two firms proposing to merge enjoved a combined market. share of about two-thirds, while another firm essentially controlled the remaining share of the market. Additionally, suppose that the (Wholesale) market elasticity of demand for Scotch liquor is -1.7 ond that it costs $16.80 to produce and distribute each liter of Scotch Based only on these dato, provide quantiative estimates of the likely pre-and postmerger prices in the wholesale market for premium Scotch liquor Instructions: Do not round intermediate calculations Enter your final responses rounded to the nearest penny (two decimal piaces). Pre-merger price: s Post-merger price 5