Economics Please provide clear explanation of every step in solution, outline formulas used in the exercise, if you handwriting, upload good quality pictures 8. A European consortium has spent a considerable amount of time and money developing a new supersonic aircraft. The aircraft gets high marks on all performance measures except noise. In fact, because of the noise, the consortium's management is concerned that the U.S. government may impose restrictions at some of the American airports where the aircraft can land. Management judges a 50-50 chance that there will be some restrictions. Without restrictions, management estimates its profit at $125 million; with restrictions, its N profit would be only $25 million. Management must decide now, before knowing the government's decision, whether to redesign parts of the aircraft to solve the noise problem. The cost of the redesign program is $25 million. There is a 0.6 chance that the redesign program will solve the noise problem and a 0.4 chance it will fail. a. What is the consortium's best course of action, assuming management is risk neutral. . Find the expected value of perfect information about the redesign program. Calculate the expected value of perfect information about the U.S. government's decision. C. Suppose the management questions its engineers about the success or failure of the redesign program prior to committing to it. Management recognizes that its engineers are likely to be biased in favor of the program. It judges that if the program truly will succeed, the engineers will endorse it 90 percent of the time, but even if the program will fail, they will endorse it 50 percent of the time. What is the likelihood of success in light of an endorsement? What if the engineers do not endorse the program