Instructions for questions #10 and #11 below Consider the following scenario with three possible suppliers, Coke, Pepsi, and three possible bottlers. Assume that:

• 3 suppliers: all three suppliers are equally efficient and have a WTS of $1(this is their cost of producing ingredients for natural flavoring).
• 3 bottlers: Two of the bottlers have a WTP of $10 (this is what a grocery will pay them for the soda). The third bottler has better relationships with local grocers and and can get $11 (i.e. the third bottler's WTP is $11).
• Production happens when a supply chain of one supplier, either Coke or Pepsi, and one bottler come to an agreement to work together. For example: Supplier B, Pepsi, and Bottler 3 might work together. Note that more than one supply chain can exist, however, each party can only participate in one supply chain.