2.9 Apple sold its iPhone to AT&T, which in turn sold it to the final consumers. Suppose that the consumers’

constant elasticity demand function for the iPhone was Q = Ap-ε, Apple’s marginal cost of production was m, and AT&T’s marginal cost of reselling the phone was

c. If both Apple and AT&T were monopolies and set prices independently, what price would they set? If they were to have merged, what price would they have set? (Hint: See Solved Problem 15.3.) C