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Two companies in Town A apply for a merger. The current price inthe market is...

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Economics

Two companies in Town A apply for a merger. The current price inthe market is \( \$ 200 \) (the per unit cost for all suppliers is\( \$ 180 \) ). There are other suppliers located in town B, C, D,E, F, G, H and I. The distances from town A are as follows: Town B:20 Town C: 28 Town D: 31 Town E: 36 Town F: 45 Town G: 58 Town H:65 Town I: 69 Transportation cost of one unit of the product is \(\$ 0.3 \) per kilometre. The competition authority applies a SSNIPto define the market for this merger application. Which of thefollowing statements is correct? There may be more than one correctstatement. In a 5\% SSNIP test, the relevant market is given bysuppliers in the towns \( A, B, C, D, E, F \). In a 10\% SSNIPtest, the relevant market is given by suppliers in the towns \( A,B, C, D, E, F, G, H \). In a 10\% SSNIP test, the relevant marketis given by suppliers in the towns A, B, C, D, E, F, G. None of thegiven answers. In a 10\% SSNIP test, the relevant market is givenby suppliers in the towns A, B, C, D, E, F, G, H, I. In a 5\% SSNIPtest, the relevant market is given by suppliers in the towns A, B,C, D, E. In a 5\% SSNIP test, the relevant market is given bysuppliers in the towns A, B, C, D.

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