4.1 Google sells its Nexus devices through its online website and through Google stores, but most sales
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4.1 Google sells its Nexus devices through its online website and through Google stores, but most sales occur through other distributors such as Walmart, Best Buy, and AT&T. Although it is not a monopoly, Google makes an economic profit from its Nexus devices. Suppose that the distribution of the Nexus devices is perfectly competitive. Further suppose that Google’s managers decide to end their distribution contracts with other companies and become the monopoly distributor of Nexus devices by expanding their network of Google stores. Ignoring any change in transaction costs, would Google’s economic profit increase? Explain your answer.
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