5 (8 points): (a) A pencil manufacturer considers acquiring a producer of rapeseed oil (rapeseed oil is needed to produce erasers; this would be backward integration). The argument for backward integration is that the price of rapeseed oil fluctuates a lot due to market conditions for rapeseed oil. The pencil manufacturer argues that they could avoid these price fluctuations by acquiring the rapeseed oil producer. From an economic perspective, is this a good reason to vertically integrate? Briefly explain (about two sentences). (b) Canon produces high quality camera bodies; to some extent they have a monopoly in this market. A number of other companies produce lenses which owners of Canon camera bodies purchase. Would it make economic sense for Canon to acquire a producer of camera lenses? Briefly explain (about two sentences). Note: Part (a) similar to Question 2 at end of Chapter; part (b) similar to Question 5