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3.There is a single manufacturer with a marginal cost of 3 and a single distributor with a marginal cost of 1. Both manufacturer and distributor

3.There is a single manufacturer with a marginal cost of 3 and a single distributor with a marginal cost of 1. Both manufacturer and distributor are monopolies. The distributor faces a demand curve of d (p)=12-p. The demand curve of the manufacturer is the marginal revenue curve of the distributor.

  1. What price will the manufacturer and distributor choose and what quantity will be sold?
  2. Suppose the manufacturer can offer a two-part tariff to the distributor. What is the optimal two-part tariff? At what price will the distributor sell? What quantity will be sold?

plz help and thank you

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