Monopolist manufacturer sells to a monopolist retailer

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Economics - Vertical Relations

A monopolist manufacturer sells to a monopolist retailer. Suppose the final consumer demand for the good at the retailer level is P = 200 – 4Q and the costs for the manufacturer of producing the good are represented by TC = 40Q + 10. The wholesale price is the only cost of the retailer. Calculate the profit of the retailer and of the manufacturer.

Reference no: EM131392859

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