5) (20 points) (Diversion/Com petition) In an effort to improve its financial performance, Firm A has been collecting response (demand) data for its product over 48 consecutive weeks. Additionally, they have recorded the weekly prices for its top two competitors, Firm B and Firm C. The data is in the Excel file Fi rmA.xlxs (a) Based on this data, build a linear response function for Firm A that also includes the prices for firms B and C. (Use what you learned in your basic stat class for building the linear response function i) (b) Suppose Firm B sets a price of $115 and Firm C sets a price of $135 for a given week . The incremental cost for Firm A's product is $65. Using the price response function from part (a), what price should Firm A set for the week in question? Write out the form ulation you are solving . (6) (20 points) (Willingness to Pay/Response Function) Suppose you have a potential market size of 50,000 customers (N= 50,000). Suppose this customer base has a (symmetric) triangular willingness to pay distribution on [4, 44]. This triangular distribution has a density function graphed below: (Symmetric) Triangular WTP Distribution 0.06 0.05 0.04 0.03 0.02 0.01 Everyone is willing to pay $4, but no one is willing to pay more than $44; The peak (median/mean/mode) is at $24. (a) Graph the corresponding response function. Do so carefully (I would encourage you to calculate the response function either analytically or numerically and then graph it). (b) What is the response at a price of p = $14 (do this exactly)? (c) What is the response at a price of p = $34 (do this exactly)