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Bought from the manufacturer to consumers

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Reference no: EM131447670

Suppose a manufacturer is a monopoly. This manufacturer produces a good at MC = 4 and sells it to a retailer. The manufacturer has no fixed costs. The retailer is also a monopoly, and it sells the good bought from the manufacturer to consumers. The retailer has no additional costs other than the price they pay to the manufacturer. The retailer faces a demand curve P = 100-3Q, where Q is the number of units sold.

How much profit does the manufacturer make? How much profit does the retailer make?

How much profit does the retailer make?

Reference no: EM131447670

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