3. Suppose you and a competitor have just introduced similar new golf balls. Your new golf ball ies 30% longer than standard golf balls while your competitors ies 15% longer than existing golf balls. Your marketing research department runs some surveys and in- forms you that your demand curve looks as follows: Q=8810p1+8p2+2\\/T1E where Q is the quantity {in units of 10,000) of golf balls you sell,p1 is your price per golfball, p; is your competitors price per golf ball, a1 is the dollars [in units of $10,000] you spend on advertising, and a2 is the dollars (in units of $10,000) your competitor spends on advertising. Your marginal cost of production is $1 per golf ball. (a) Suppose that you believe that your competitor will set p2 = 2 and {12 = 16 regardless of your decisions of p1 and (:51. What advertising and price levels should you set? What are your prots (note: to get the prots correct, you need to pay close attention to the units Q, a], and a; are measured in)? {b} Instead suppose you anticipate your competitor will respond to your decisions of 3:1 and .31. Describe in words how you might proceed {i.e. you do not need to do any calculations). Would you need additional data? If so, what data would you want, and what would you do with it