1) Sol Microsystems has recently invented a new language, Guava, which runs on a proprietary chip, the Guavachip. The chip can only be used to run Guava, and Guava can only run on the W. Sol estimates that if it sells the chip for a price pc and the language for a price pg, the demand for the chip-language system will be 2c= 120(p.+pg) (a) Sol initially sets up two independent subsidiaries, one to produce the chip and one to produce the language. Each of the subsidiaries will price its product so as to maximize its profits, while assuming that a change in its own price will not affect the pricing decision of the other subsidiary. Assume that marginal costs are negligible for each company. If the price of the language is set at pg, what is the chip company's profit function (neglecting fixed costs)? (b) Calculate the optimal choice of pc as a function of pg. (c) Now consider the language subsidiary's pricing decision. What is the optimal choice ofpg as a function of pg. (d) Solving these two equations in two unknowns, what is the values of pc and pig