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ABC produces car brakes. WMB wants to order 10000 brakes for a price of $50 per brake from ABC, but only if ABC builds a factory for the brakes right next to WNB's factory. Building the factory costs $200000 and producing a brake costs 20. After building the factory, ABC could also sell the brakes to a competitor for $25 per brake.

At what price per brake can WMB hold up ABC after ABC has built the factory?

Microeconomics, Economics

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