Suppose that the inverse demand for a downstream firm is P = -82 − 2Q.Its upstream division produces a critical input with costs of C_U(Q_d)= 3(Q_d )².The downstream firm's cost is C_d(Q)= 2Q.When there is no external market for the downstream firm's critical input,the downstream firm should produce: A) 8 units. B) 10 units. C) 12 units. D) 14 units.

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The Answer of Suppose that the inverse demand for a downstream firm is P = -82 − 2Q.Its upstream division produces a critical input with costs of C_U(Q_d)= 3(Q_d )².The downstream firm's cost is C_d(Q)= 2Q.When there is no external market for the downstream firm's critical input,the downstream firm should produce: A) 8 units. B) 10 units. C) 12 units. D) 14 units.

Suppose That the Inverse Demand for a Downstream Firm Is