M8D1 Something is Brewing.docx - Assume that the craft wine...

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Assume that the craft wine market is composed of only eight firms, with each of these having a 12.5 percent market share. One of these eight firms intend to merge with a competitor that produces fruit-infused wines that are often compared to its own boutique line in industry publications. The first firm’s economists have estimated that the cross elasticity of demand for its competitor’s product, in relation to its own, is 3. The competing firm controls substantial vineyards and orchards, while the first firm does not. Each firm is in a strong financial position and is located within a 100-mile radius of its competitors. Foreign firms do not compete in this specialty market. Assume that you are a managerial consultant hired to advise this craft winery as it develops a premerger messaging and communications campaign, which includes premerger filings with the FTC. Your task is to create a prospectus to be circulated among members of the

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