The sole distributor of a product faces the inverse demand curve p = a bQ. It takes the wholesale price m charged by the monopoly manufacturer of the product as given and has no other costs

(a) What retail price p does the distributor set?

(b) What wholesale price m does the manufacturer set, if it has constant marginal costs c?

(c) What retail price p and wholesale price m does the manufacturer set if it is able to dictate the distributors retail price?

(d) Compare the manufacturers profits in both cases. Explain your findings.