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Suppose that the inverse demand for a downstream firm is P = 150 - Q. Its upstream division produces a critical input with total costs

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Suppose that the inverse demand for a downstream firm is P = 150 - Q. Its upstream division produces a critical input with total costs of Cu(Qq) = 5(Qd)2. The downstream firm's total cost is Cq(Q) = 10Q. When there is no external market for the downstream firm's critical input, the downstream firm in transfer pricing should produce Multiple Choice O 11.67 units. O 12.5 units. O 14 units. O 15 units

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