Consider Morms. Therstrm is based in Slovenia and produces ball bearings {upstream firm). Yhe cost of producing ball bearings is 6 per unit. The second rm is based in Greece. This firm produces machines (downstream rm). To produce one machine. the Greek rm must buy 2 bail bearings (ignore shinping costs between Slovenia and Greece). In addition, fbr each machine it makes. it has a production cost of4 per machine. Machines are then said according to the demand curve: P = 240 2Q where P is the price of a machine and Q is the total number of machines said. For the next four questions, assume that both rms are monopolists. 1. (5 points) Write down the prot function for the Greek rm, knowing that it imports ball bearings from the Slovenian supplier (Hint: Given the use of 2 ball bearings per machine, what is the total cost paid for ball bearings to produce one machine?) 2. (5 points) Taking the price of ball bearings as given, solve for the optimal quantity of machines produced and sold by the Greek producer. 3. (7 points) Write down the prot function for the Slovenian ball bearings supplier. Substitute for the quantity demanded using the demand coming from the Greek machine producer. (Hint: recall that the demand for ball bearings is 2 times the quantity of machines produced) 4. (10 points) Calculate: a. the equilibrium price of ball bearings b. the equilibrium price of a machine c. the quantity of machines produced and sold (1. the quantity of ball bearings produced and sold e. the prots of the Slovenian rm f. the prots of the Greek rm Suppose now that the Greek rm becomes a multinational corporation by acquiring the Slovenian supplier. In doing so, it must pay a xed cost of 1,000 to the Greek government (Hint: treat this payment fee in the same way you would treat a xed cost of production). 5. (5 points) Write down the prot function of the Greek multinational rm, combining the prots 'om each production plant (in Greece and in Slovenia)