A monopoly manufacturer sells its good x to a monopoly retailer at the per-unit price k. The good from the manufacturer is the only input the retailer needs. Thus, the retailers production function is y=x, where y is the quantity the retailer sells to the consumers and x is the quantity the retailer buys from the manufacturer. The demand from the consumers to the retailer is y=15-p/2, where p is the per-unit price the retailer charges consumers. If the average cost is constant and equal to 3, what is the ratio (k-3)/(p-k) of the manufacturers profit margin with the retailers profits margin?

a.None of the other answers.

b.2

c.3

d.1

e.1/2