1. In the social welfare graph of dynamic market competition with collusion, which part of social welfare is increased in comparison to normal Bertrand model without collusion? (Provide the reason of your choice). a. Profit b. Consumer Surplus c. Dead Weight Loss d. Nothing has changed 2. Which of the following best describes the characteristics of vertical relations in general? (Provide the reason of your choice). a. Consumers can enjoy lower prices from price war. b. There are two demand curves c. There are four prices. d. We are using backward induction to solve the NE. 3. In the following setting of franchise for one retailer and PS for the other, what is profit of the manufacturer? (p=130-2Q, MC=10 franchise fee=f, profit sharing contract = (retailer: manufacturer)=(50:50) ). you don't have to calculate the actual amount off. just use 'f' for the fee