Suppose a manufacturer is a monopoly. This manufacturer produces a good at MC = 4 and sells it to a retailer. The manufacturer has no fixed costs. The retailer is also a monopoly, and it sells the good bought from the manufacturer to consumers. The retailer has no additional costs other than the price they pay to the manufacturer. The retailer faces a demand curve P = 100-3Q, where Q is the number of units sold.
a) What price will the manufacturer charge to the retailer?
B) What price will the retailer charge to the consumers?