l3} lb} Short Message Service [SMS] has been a traditional taxt messaging service used by many cellular phone owners for years. l...lsuallyr when you send a text message to friends who are using the same mobile phone operator as you {Intro-EMS}, it is free of charge. However. when you send a text message to friends who are using a different mobile phone operator from you, you have to pay for each text message. Recently years, many cellular phone users switched to use instant messaging services instead of EMS. Iii'ilhstar-lipp is one of the instant messaging application providers. After downloaded the sofhvare to their cellular phones. consumers can enjoy free of charge instant messages service and can send free messages to friends who are from any mobile phone operators. Name the strategy adopted by Whatspp. Briey explain the rationale of this strategy. A monopolist earns $5!) million annually and will maintain that level of prot indenitely. provided that no other rm enters the market. However. if another film enters the market. the monopolist will earn $S million in the current period and $20 million annually thereafter. Assume the interest rate is E!- percent. lbi} What is the present value of the monopolist's current and future earnings if entry occurs? {bii} If the monopolist charge below the monopoly price in order to keep potential entrants out of the market, she can earn $13 million indenitely, should this pricing strategy to be adopted? Explain