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For vertically-related firms that each have market power, the problem facing the firms is that: the markups of upstream and downstream firms that result in
For vertically-related firms that each have market power, the problem facing the firms is that: the markups of upstream and downstream firms that result in lower profits. the markup of only a downstream firms that results in lower profits. the markup of only an upstream firms that results in lower profits. the forced exit of rival upstream and downstream firms that results from a vertical merger
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