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Two clinics in a market want to merge. The price elasticity of demand for clinic services is -0.20, if before a merge, firm A has

Two clinics in a market want to merge. The price elasticity of demand for clinic services is -0.20, if before a merge, firm A has marginal costs of $60 and a market share of 2 percent, and firm B has marginal costs of $60 and a market share of 4 percent. After the merger, the merged firm should be charging a price of:

  1. $100
  2. $60.00
  3. $85.71
  4. $66.67

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