Chemicals Inc. earned an important contract with DrugsArt. In order to fulfil the contractual duties by supplying the new client, the company needs to build a new factory. The annual fixed costs of the factory amount to $11,500,000 USD. Chemicals Inc.'s production capacity expands by 1.5 million units and they can produce at unit costs of $6. Their new client agrees to buy 1.5 million units at price $14. If the contract is cancelled, there is a second option: Chemicals Inc. can sell to Plan B at a unit price of $10. a) What is the annual profit Chemicals Inc. can generate? b) What is the precondition for Chemical Inc. to sign the contract and build the factory? c) Why does DrugArt have an incentive to exploit Chemical Inc. after contract closure? What is the relationship-specific investment? d) Suppose the contract with DrugArt is cancelled after the factory is built. The product can still be sold to Plan B. Should Chemical Inc. do this? e) In this scenario, what is the quasi-rent that DrugArt can attempt to extract? f) Now suppose DrugArt approaches Chemical Inc. to renegotiate the price down to $12 after the factory is built.