In addition, you learn that BOS furnaces cost approximately 80.3 million euros to construct. EOF furnaces cost 295.65 million euros, and SEAF furnaces cost 124.1 million euros. EOF furnaces have uses other than steel production, and could earn prot of 21.9 million euros per year if (permanently) converted to another industrial process. a. The demand for steel in the EU is estimated to be Q = 450 10F, where P is the price per kilo in euros and Q is thousands of kilos per day. What do you predict will be the price of steel? b. For each ofthe three technologies, would you recommend that a currently existing factory continue to operate, or exit the industry? Would you recommend construction of a new factory, and if so. which technology would you recommend? e. The EU is considering subsidizing producers using the EOF technology by 2 euros per kilo, to encourage recycling and environmentally friendly technologies. What impact will this subsidy have on the price of steel in the EU? d. How large a subsidy would the EU need to offer in order to encourage the adoption of the EOF technology? e. Suppose a technological innovation reduces the operating cost of B08 furnaces (both currently existing and newly constructed) from 9 euros per kilo down to 3 euros per kilo. What would you expect to happen to the price of steel in the EU in the long run? f. Now what advice would yen give to the manager of a currently operating SEAF furnace? An EOF furnace? After the innovation, how many furnaces of each type would you expect to see operating in the long run