given:

Pt= 42.978+.192Ps

Ps= 40.28+.158Pt

P*s= 48.542

P*t= 52.298

Q*t= 25.038 million

Q*s= 14.378 millon

solve problem 2

Consider way back in 2019, when Sprint and T-Mobile competed against each other in offering wireless service to US customers. The monthly demand curves (with quantities in millions) were Qs(Ps, Pr) = 37.63 - 0.479PS + 0.158P, Qr(Pr, Ps) = 41.81 -0.498P+0.191Ps. While most of the cost associated with wireless service is fixed, each firm faces a $2 marginal cost per customer (mostly from the additional demands on customer support). 2. Now we know that the two firms merged in 2020. Consider the case that the merged company still offers separate plans and prices for pre-merger Sprint and T-Mobile customers. a. (2 points) Assuming this newly merged company wants to maximize sum profits, what should the new prices Ps and Pr, be? b. (2 points) How many "Sprint" and "T-Mobile" customers will it have now? C. (2 points) What is the firm's combined monthly profit? Consider way back in 2019, when Sprint and T-Mobile competed against each other in offering wireless service to US customers. The monthly demand curves (with quantities in millions) were Qs(Ps, Pr) = 37.63 - 0.479PS + 0.158P, Qr(Pr, Ps) = 41.81 -0.498P+0.191Ps. While most of the cost associated with wireless service is fixed, each firm faces a $2 marginal cost per customer (mostly from the additional demands on customer support). 2. Now we know that the two firms merged in 2020. Consider the case that the merged company still offers separate plans and prices for pre-merger Sprint and T-Mobile customers. a. (2 points) Assuming this newly merged company wants to maximize sum profits, what should the new prices Ps and Pr, be? b. (2 points) How many "Sprint" and "T-Mobile" customers will it have now? C. (2 points) What is the firm's combined monthly profit