Now assume that these two firms merge to form NPR International. a. Write down the profit...

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Now assume that these two firms merge to form NPR International. a. Write down the profit function for NPR given that it sets a price p for what- sits. Calculate the postmerger profit- maximizing price for whatsits, sales of whatsits, and the profits of NPR. b. Confirm that this merger has increased the joint profits of the two firms while reducing the price charged to con- sumers. By how much has consumer surplus been increased by the in the market for whatsie? Assume that the two firme last forever and that the disco tor R is 0.9. What is the larg that PepRich would be willing to p D the owners of Norman Inte take over Norman International W is the lowest sum that the Norman International would be willing to accept? (Hint: Calculate the pre value of the profit streams of the firms before and after the merger, notice that neither firm will wa be worse off with the takeover without it.) Now assume that these two firms merge to form NPR International. a. Write down the profit function for NPR given that it sets a price p for what- sits. Calculate the postmerger profit- maximizing price for whatsits, sales of whatsits, and the profits of NPR. b. Confirm that this merger has increased the joint profits of the two firms while reducing the price charged to con- sumers. By how much has consumer surplus been increased by the in the market for whatsie? Assume that the two firme last forever and that the disco tor R is 0.9. What is the larg that PepRich would be willing to p D the owners of Norman Inte take over Norman International W is the lowest sum that the Norman International would be willing to accept? (Hint: Calculate the pre value of the profit streams of the firms before and after the merger, notice that neither firm will wa be worse off with the takeover without it.)

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To perform the analysis Ill need some specific equations and values for the profit functions prices and other relevant parameters Since the exact info... View the full answer