Suppose the upstream firm is a professional sports team. Demand for the broadcasting rights of its games is Pup = 100 - 2Qup and MC = 20. The downstream firm is a TV station which buys the broadcasting rights from the team and broadcasts games to consumers. Demand for its games is Pdown 160-20Qdown. - 1. What price will consumers pay? 2. If the two firms merge, what price will consumers pay?
