please answer

Question 34 Not yet answered Marked out of 200 r': Flag question Question 35 Not yet answered Marked out of 2.00 t' Flag question Question 36 Not yet answered Marked out of 2.00 t" Flag question Question 37 Not yet answered Marked out 0| 2.00 '7, Flag question In the production process of steel, iron ore is a crucial input. Suppose the upstream iron are rm. The Iron Ore Company of Canada (IOC). proposes to merge with Algoma Steel (A3}. the downstream steel manufacturer. Each rm is the monopolist in its own production stage. The following information is given: Demand for AS' steel: PAS = 500 0A5 AS' MC: Mans =ATCAS = Free, the price IOC charges AS. For simplicity, AS has no other MCs. For simplicity, one unit of iron ore produces one unit of steel. IOC's MC: MCIoc = ATCIoc = $100; Note that the MR equation has the same intercept as the demand but double the slope. The joint prot of IOC and AS before vertical merger is "\\ w a. $10,000 3 b. $20,000 13c. $30,000 C? 0. $40,000 Continue with Question #34: The prot after vertical merger is equal to [3' a. $30,000 0 '3. $20,000 0 c. 350.000 '71 d. $40,000 Continue with Questions #34 and #35: If vertical merger is not allowed. IOC may still be able to achieve the same results of a vertical merger. For example, IOC can offer to sell as much iron ore AS wants to purchase at the price of per unit. In exchange for such a discounted price, AS has to sign a contract with IOC and IOC can charge a maximum signing fee that is equal to . Under this agreement. IOC knows that AS will purchase units 01 iron ore. Fla. $100;$40,000;200 Uh. $100;s40,000;400 o 0. $200; $50000; 200 (3' d. $200: 550.000; 400 Continue with Questions #34, #35 and #36: If you own General Motors, which uses steel to produce automobile. you would prefer a vertical mergerto no vertical merger between IOC and AS because your consumer surplus (CS) rises by . Between a vertical merger and a supply contract between IOC and AS (as described in Question #36). you O a. $15,000; are indifferent between the two arrangements 0 in. $15,000: prefer a vertical merger to supply contract 0 c. $25,000: are indifferent between the two arrangements 0 0. $25,000; preferthe supply contract to a vertical merger