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a) (10 marks). Consider the case in which the retailer chooses the retail price and the level of retail services. (i) Explain how a non-integrated

a) (10 marks). Consider the case in which the retailer chooses the retail price and the level of retail services. (i) Explain how a non-integrated manufacturer can use two-part tariffs to achieve the vertically integrated monopoly profit when the retailer is a monopolist but not when the retailers are competitive. (ii) Show how the non-integrated manufacturer can use RPM to achieve the vertically integrated profit when the dealers are competitive.

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