An executive at KJR proposes that the company "vertically integrate" by purchasing Sweet Tooth. She claims that if KJR purchases Sweet Tooth from its shareholders at a price equal to the profits of Sweet Tooth plus $1 then the merged company (Sweet Tooth and KJR) can earn total profits in excess of the sum of the individual firm's profits. Hence the profits of the merged firm less the purchase price of Sweet Tooth would be greater than the original profits of KJR justifying the merger. Use your answers above to evaluate her claims