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Suppose a corporation has two subsidiaries, one of which is unregulated and sells all of its output to the other, regulated subsidiary. Permitted profits at
Suppose a corporation has two subsidiaries, one of which is unregulated and sells all of its output to the other, regulated subsidiary. Permitted profits at the regulated subsidiary are equal to 10 percent of total costs. Here is the initial profit picture for the subsidiaries: If the unregulated subsidiary doubles its selling price and continues to sell the same quantity, what are the new profits at Instructions: Enter your responses as a whole number. a. the unregulated subsidiary? $ b. the regulated subsidiary? $
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