A what is the equilibrium price paid by the retailer B what is the equilibrium price paid by consumers C what is the price cost markup at each level E suppose the upstream and downstream retailer were to vertically integrate what retail price would they set and what quantity would they sell ?F if non linear pricing two part tariff is possible how would the optimal solution under vertical integration compare to that of vertical separation (double marginalization ?

3 (12 points) Suppose that there is a single upstream supplier and a single downstream retailer. The inverse consumer demand is given by p = 500-59. The retailer's only cost is the per-unit price paid to the supplier w. The supplier's marginal cost of production is constant and equal to 20. a. (2 points) Plot the downstream demand, downstream marginal revenue, upstream demand, upstream marginal revenue, and marginal cost. Clearly label all lines and relevant points