18. Refer to Problem 17. Now, assume that U acquires D1; that is, U and D1 become one company. U
still proposes a take-it-or-leave-it offer for D2; then, D1 (or U) and D2 engage in Bertrand price
competition in the retailing market. Other conditions remain the same. Under this setup, which
statement below is wrong?
(A) D2 cannot earn a profit bigger than zero in all equilibria.
(B) D2 cannot sell any device in all equilibria.
(C) The retailing price set by D1 can be higher than the retailing price set by D2 in an equilibrium.
(D) The retailing price set by D1 can equal the retailing price in Problem 17 in an equilibrium.