2. The inverse market demand curve for a fnal good is p = 100 - Q and the marginal cost of
supplying labor is MCL= 40. Each unit of output requires half unit of labor, L, and no other
factor. That is, Q = 2L.
申論題內容
C. (6 points) Show that a vertical merger of the upstream and downstream monopoly increases
proft and benefts consumers.