Suppose there is a monopolist manufacturer in the wholesale market with a marginal cost at 50, MCM=50, and no fixed cost. There is also a monopolist retailer in the retail market with the retail demand equation: p=250-q. The manufacturer first chooses the wholesale price w, and after observing w the retailer chooses the retail price p. And they work separately from each other. Find which statement below is true.

Suppose there is a monopolist manufacturer in the wholesale market with a marginal cost at 50, MCM=50, and no fixed cost. There is also a monopolist retailer in the retail market with the retail demand equation: p=250-q. The manufacturer first chooses the wholesale price w, and after observing w the retailer chooses the retail price p. And they work separately from each other. Find their total profits and the consumer surplus at the equilibrium.

	a.	At the equilibrium their total profit is 5,000 and the consumer surplus is 2,500.
	b.	At the equilibrium their total profit is 7,500 and the consumer surplus is 2,500.
	c.	None of the other choices are correct.
	d.	At the equilibrium their total profit is 7,500 and the consumer surplus is 1,250.
	e.	At the equilibrium their total profit is 10,000 and the consumer surplus is 5,000.