The pundit believes the game will be a 2-2 draw, with plenty of entertainment but some questionable defending.
Dennis Bergkamp statue Emirates Stadium
The match takes place on Sunday at The Emirates and is the most high profile game of the weekend.
Merson said: "Liverpool, they are decent going forward, they are quick and score goals on the break, but again, defensively they are not too good either. I see plenty of goals in this one."
Arsenal are missing Per Mertesacker and Gabriel Paulista through injury, meaning new signing Rob Holding could start.
Picture Supplied by Action Images - Rob Holding
Merson is concerned about their options up front in the long term, and called out Alexis Sanchez and Theo Walcott as players who Arsene Wenger cannot expect to carry the team in a striker role all season if Olivier Giroud is out.
He said: "The injuries are a major concern for Arsenal. They have one centre forward in Olivier Giroud when their rivals have three or four each. Don't tell me Alexis Sanchez and Theo Walcott are centre forwards. They might be able to step in for one or two games but you are not going to win the Premier League that way"
Arsenal fans will hope that Arsene Wenger realises that Merson is speaking based on past evidence, and the manager must attempt to do something new if he is to avoid the same result of falling short of winning the league.
This mean using the last fortnight or so of the transfer window to sign a new striker, one capable of breaking the 20 goal barrier in the Premier League, which Olivier Giroud is yet to do.
France's Olivier Giroud