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1. (15 points) Demand for a given good is q = 2p where p is the nal price. The retailer's cost of selling q units
1. (15 points) Demand for a given good is q = 2p where p is the nal price. The retailer's cost of selling q units of the good is $0, and the manufacturer's cost is C(q) = qZ/Z. A. What is the total prot if the manufacturer and retailer were vertically integrated? B. If they aren't integrated, what is the sum of the manufacturer's and retailer's prots if the manufacturer charges the retailer a unit wholesale price pw
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