Suppose that the inverse demand for a downstream firm is P = -82 − 2Q. Its upstream division produces a critical input with costs of CU(Qd) = 3(Qd)2. The downstream firm's cost is Cd(Q) = 2Q. When there is no external market for the downstream firm's critical input, the downstream firm should produce:

Q=8 Units

Step-by-step explanation:

FIrst from the Critical cost if we take first derivative we get marginal upcost i-e

taking first derivative we get

similarly taking derivative of downstream we get

So

answer: get more recipes with 3 magazines for $20! i often use chicken broth instead of water. 3 tablespoons butter, divided; 1/2 cup freshly grated parmigiano-reggiano bring water and salt to a boil in a large saucepan; pour polenta slowly into 5 minutes to thicken; stir and taste for salt before transferring to a serving bowl.