Question is in the attached image. Thank you!

2) Consider the problem of the upstream and downstream monopolist (pg 510 in Varian). Suppose the upstream monopolist faces a constant marginal cost of M C\"u m = 1. Suppose the upstream monopolist sells factor inputs to the downstream monopolist at the price w. The downstream monopolist faces the inverse demand y) = 5 1; so that their marginal revenue is M Rmnream = 5 2y. In addition the downstream monopolist produces output with the production function y = f (1:) = z, where z are inputs pur- chased from the upstream monopolist at a price 11:. Suppose the marginal cost to the downstream monopolist is just w.(Hint: marginal revenue for the upstream monopolist will be M Rummm = 5 49:) a) Solve for 2:, put: and p. b) Suppose that the downstream monopolist purchased the rm of the up- stream monopolist. What would be the new values of y and p be? c) How are the answers different