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Icarus Medical Supplies Produces Patented Adhesives That Are Used to Reassemble

Question 77

Multiple Choice

Icarus Medical Supplies produces patented adhesives that are used to reassemble broken bones. Pindrop Medical Products manufactures patented pins that are also used to reassemble broken bones. Both of these imperfectly competitive firms are maximizing profit. If Icarus merges with Pindrop, then the merged firm will maximize profits if it


A) decreases the prices of pins and adhesives.
B) does not change the prices of pins or adhesives.
C) increases the prices of pins and adhesives.
D) None of the above is correct.

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