Question 5 Assume that Mdget International supplies widgets to Gizmo Inc. in Boston, where the demand for gizmos is Pgb = 1 _ Qgh; and TruGizmo Inc. of New York, where demand for gizmos is Pgn = 0.5 - 0.2an. Assume that WI's marginal costs of supplying both markets is $0.1 per widget and that both Gizmo Inc. and TruGizmo Inc. need exactly one widget for every gizmo they sell. Both gizmo dealers have other costs of production that amount to $0.1 per gizmo in addition to cost w per gizmo paid to WI. a. What are the profit-maximizing prices for widgets and gizmos in these two markets if Widget International cannot price discriminate? What are the profits of the three firms? b. Show that if WI can merge with either Gizmo Inc. or TruGizmo Inc., it prefers to merge with TruGizmo Inc