Slick Shades Has a Constant Marginal Cost of Production Equal

Multiple Choice

Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30. 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; the same
B) the same as; the same
C) greater than; greater
D) the same as; greater