What is the equilibrium price paid by the retailer

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Questions:

A what is the equilibrium price paid by the retailer

B what is the equilibrium price paid by consumers

C what is the price cost markup at each level

E suppose the upstream and downstream retailer were to vertically integrate what retail price would they set and what quantity would they sell ?

F if non linear pricing two part tariff is possible how would the optimal solution under vertical integration compare to that of vertical separation (double marginalization ?

 

Reference no: EM133345918

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