Review the numerical example about Race Car Motors. Calculate the profit earned by the upstream division, the downstream division, and the firm as a whole in each of the three cases examined:
(a) There is no outside market for engines;
(b) There is a competitive market for engines in which the market price is $6000;
(c) The firm is a monopoly supplier of engines to an outside market. In which case does Race Car Motors earn the most profit? In which case does the upstream division earn the most? The downstream division?