Complements: After you submit your analysis using the above model, AT&T and DirecTV point out that AT&T also provides broadband services, which is a complement to DirecTV's video services: many consumers want both broadband and video services. Thus, the demand function should really be written as: Dj (pj , pj ) = 66 5pj 2pj . Each firm has a marginal cost of c = 6. (d) Suppose that prior to the merger, the firms are engaged in Bertrand competition. What are equilibrium quantities and prices? (e) If Firms 1 and 2 merge, what will be the new equilibrium price and quantity? (f) Does consumer surplus increase or decrease following the merger? What about industry profits? (g) Given your answers to the preceding question, should the merger be approved