In the upstream layer of the industry, there are two suppliers: Supplier 1 and Supplier 2. The Supplier 1's marginal cost of production is 1 and Supplier 2's marginal cost of production is 2. The downstream industry is competitive and buys products from the upstream suppliers at the cost of e and k, respectively. Downstream industry also hires workers at a competitive wage of w=$3. The firms in the downstream produce the final good using the production function Q = E/ K/W/, where E, K, and W are the amount of inputs purchased from Supplier 1, Supplier 2 and labor market, respectively. The inverse demand faced by the downstream industry is P-20-3Q. a) Find the equilibrium prices e, k, and P, quantities E, K, W, and Q, and the profits for all firms in the supply chain. b) Compute prices, output, and profits if downstream and upstream firms would vertically integrate.