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​Wine Merger in October,2014,Vintners Global Resource's (VGR)agreed to Purchase M.A.Silva.VGR Is a Is

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​Wine Merger
In October,2014,Vintners Global Resource's (VGR)agreed to purchase M.A.Silva.VGR is a leading manufacturer of glass bottles and packaging for wines and M.A.Silva is a manufacturer of premium natural corks.What is the expected effect of this merger on price-cost margins?


Definitions:

Profit-Maximizing

The procedure companies undertake to find the best combination of price and production volume for peak profit.

Output

The quantity of goods or services produced by a company, industry, or economic system.

Housing Development

A planned residential community, often including various amenities, constructed by developers and divided into individual properties for sale.

Profit-Maximizing

A strategy or behavior that seeks to achieve the highest possible profit from business operations, given certain constraints and market conditions.

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