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Answer to Question #123236 in Economics for Akan

Question #123236
assume a market consists of two upstream firms, and they are the sole suppliers of their respective products. Each of these monopolists sell at a linear price to one downstream duopolist each. What would be the effect of vertical integration on the final good price.
1
Expert's answer
2020-06-23T04:27:37-0400

Vertical integration will decrease the price of the final good, because the price of inputs (intermadiate goods) will decrease.


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