Slick Shades has a constant marginal cost of production equal to $40 and the distributors have a constant marginal cost of distribution equal to $20. If Slick Shades vertically integrates with the perfectly competitive distributors, the profit- maximizing quantity will be ______ the profit- maximizing quantity if they did not vertically integrate and the combined firm will earn
______Profit if they did not vertically integrate.
A)greater than; greater
B)greater than; the same
C)the same as; the same
D)the same as; greater

Question

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The Answer of Slick Shades has a constant marginal cost of production equal to $40 and the distributors have a constant marginal cost of distribution equal to $20. If Slick Shades vertically integrates with the perfectly competitive distributors, the profit- maximizing quantity will be ______ the profit- maximizing quantity if they did not vertically integrate and the combined firm will earn
______Profit if they did not vertically integrate.
A)greater than; greater
B)greater than; the same
C)the same as; the same
D)the same as; greater

Slick Shades Has a Constant Marginal Cost of Production Equal