Consider a similar economy as in Question 1. Agent C can produce private information about the true realization x at t=1 at the cost y=8. Suppose [s=lg=@s=r=1. Now x is uniformly distributed between |a. b]. The probability density of x is f(x) = i for x |a.b] and zero otherwise. The cumulative distribution function is F(x) = ;;u for x |a. b]. For example, F(L) = =l prob(x = L) = :%: means there is a probability of F{L) that x is smaller than L. On the other hand, prob(x 2 L) =1-F(L) =1 - E is the probability of x bigger than L. Suppose w=50 and x is uniformly distributed between a=0 and b=100. It means f(x)=1/100. a) At t=1, what is the maximum amount Lg that agent B can borrow with probability 17 What is the haircut for agent B under this strategy? [4 Points] b) Agent B can propose a higher loan with less probability of trade. What is the maximum expected amount E(Lg) that agent B can borrow from agent C7 [4 Points] c) What is the haircut for agent A in equilibrium? [2 Points] Suppose w=60 and x is uniformly distributed between 20 and 100. It means f{x)=1/80. d) What is the haircut for agent A in equilibrium? [6 Points]