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NEW YORK, Sept. 5 (AP)ÛÓThe combination of a prime rate increase and some bad inflation news dealt the stock market a setback in relatively quiet trading today.</br></br>The Dow Jones average of 30 industrials dropped 7.85 points to 940.96, trimming its gain for the week to 8.37 points.</br></br>Before the market opened, the government reported that producer prices of finished goods rose 1.5 percent in August.'</br></br>Many of the nationÛªs largest banks, meanwhile, raised their prime lending rates from 11 Vz percent to 12 percent.</br></br>Merger, newsÛÓor, actually, the lack of itÛÓaccounted for two of the dayÛªs biggest losers. Norris Industries fell 5'/s to 26 V-i after the company said it had broken off merger talks with an unnamed second party. And Integon, which denied reports that it was considering a takeover offer, lost 1% to 26Û÷A.