Consider two firms. The first firm is based in Slovenia and produces ball bearings (upstream firm). The cost of producing ball bearings is 6 per unit. The second firm is based in Greece. This firm produces machines (downstream firm). To produce one machine, the Greek firm must buy 2 ball bearings (ignore shipping costs between Slovenia and Greece). In addition, for each machine it makes, it has a production cost of 4 per machine. Machines are then sold according to the demand curve: P = 240 - 29 where P is the price of a machine and Q is the total number of machines sold. For the next four questions, assume that both firms are monopolists. Vinter ZULU 4. (10 points) Calculate: a. the equilibrium price of ball bearings b. the equilibrium price of a machine c. the quantity of machines produced and sold d. the quantity of ball bearings produced and sold e. the profits of the Slovenian firm f. the profits of the Greek firm Suppose now that the Greek firm becomes a multinational corporation by acquiring the Slovenian supplier. In doing so, it must pay a fixed cost of 1,000 to the Greek government (Hint: treat this payment fee in the same way you would treat a fixed cost of production). 5. (5 points) Write down the profit function of the Greek multinational firm, combining the profits from each production plant in Greece and in Slovenia).