2. Versioning Software magnate Bill Doors is planning to market a new statistical package called RegressIt. Bill's engineers could develop two versions of the software: a full-featured version called RegressIt Pro and a stripped-down version called RegressIt Core. The engineers estimate that the Pro version would cost $1,500,000 to develop, while the Core version would cost $600,000 to develop. Due to development complementarities, developing both versions would cost a total of $1,800,000. Bill's marketing team has determined there are two segments of the potential customer base: student and business users. The willingness to pay for each seg- ment and size of each segment are found in the table. Student Business Pro $90 $250 Core $70 $140 Number 25,000 15,000 Consumers buy at most one copy of the software, either the Pro or the Core. If of- fered both versions, they are free to choose either, and will choose the version which offers them the most consumer surplus. In case of a tie, assume they buy the Pro version. If all offers give them negative surplus, they buy nothing. a. Suppose Bill decides to sell only one version of the software. Which would he choose, and what would the profit-maximizing price be? Show why your choice is optimal with calculations. b. Suppose Bill is now considering offering both versions. Determine the profit- maximizing prices, and show why your choice is optimal. Can he do better of- fering both versions than offering one