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Imagine a two - firm supply chain that consists of a supplier and a retailer. The supplier has a marginal cost c = $ 4

Imagine a two-firm supply chain that consists of a supplier and a retailer. The supplier has a marginal cost c =$40 and a wholesale price w = $60. The retailer is looking to sell its product at p = $100; at this price point, demand over the lifespan of the product is distributed normally with mean 200 and standard deviation of 10. a) What is the expected profit for the supplier and the retailer assuming each of them maximizes their own profit?

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