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Katie's Quilts is a small retailer of quilts and other bed linen products. Katie currently purchases quilts from a large producer for $100 each and

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Katie's Quilts is a small retailer of quilts and other bed linen products. Katie currently purchases quilts from a large producer for $100 each and sells them in her store at a price that does not change with the number of quilts she sells. Katie is considering ver- tically integrating by making her own quilts. If the fixed cost of vertically integrating is $10,000 and she can produce quilts at $50 per quilt, her total cost of producing quilts, q, herself is C = 10,000 + 50q. How many quilts does Katie need to sell for vertical integration to be a profitable decision

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