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Question 3. (8 marks] Now assume that the two firms in Question 2 merge to form a firm called NPR International. a) (5 marks] Write
Question 3. (8 marks] Now assume that the two firms in Question 2 merge to form a firm called NPR International. a) (5 marks] Write down the profit function for NPR given that it sets a price pw for whatsits. Hence, calculate the postmerger profit-maximizing price for whatsits, sales of whatsits, and the profits of NPR. b) [3 marks] Confirm that this merger has increased the joint profits of the two firms while reducing the price charged to consumers. By how much has consumer surplus been increased by the merger in the market for whatsits
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