Question: Question is in attached image. Thank you! Consider an upstream and downstream monopolist problem. The upstream monopolist sells inputs, 3, to the downstream monopolist at

Question is in attached image. Thank you! Consider an upstream and

Question is in attached image. Thank you!

Consider an upstream and downstream monopolist problem. The upstream monopolist sells inputs, 3, to the downstream monopolist at the price :1 and faces the cost of producing output C(m) = 2032/2 with the marginal cost 209:. The downstream monopolist uses the inputs to produce output, 9, with the production flmction y = :3. The downstream monopolist faces the inverse demand curve p(y) = 200 10y with marginal revenue M Rdwngream = 200 20y and faces the cost function C(y) = qy with marginal cost of q per unit of output. (Hint: The marginal revenue of the upstream monopolist is Maw\"... = 200 403:.) 8.) Calculate q, p, y and 2:. Additionally calculate the the prot for both the upstream and downstream monopolist. b) Suppose the downstream monopolist purchased the upstream monopolist, what would be the values of my and 2:. Note that the rm no longer has to pay (1 because they produce the input themselves

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