Suppose the merger of two firms, Heinz and Beech-Nut, will reduce the price elasticity of demand for each firm's product from 2 to 1. For each firm, the average cost of production is constant at $2 per unit. Suppose Heinz initially has a price of $10 (at which they sell 100 units) and is considering raising the price to $11. Compute the profit with the new price of $11 before the merger (elasticity = 2). Q TR TC Profit Initial: $10 100 $1,000 $400 $600 New: $11; Before merger: Elasticity = 2 O 640 700 O 600 810 O 630 560 800 O 720