suppose a downstream division pays a price for inputs from an upstream division that exceeds marginal cost.

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Question:

suppose a downstream division pays a price for inputs from an upstream division that exceeds marginal cost. What is the result?
-less than optimal overall profits for the firm.
-a final price that exceeds the profit-maximizing price.
-optimal overall profits for the firm.
-a final price that is less than the profit-maximizing price.