More generally, HA's choices to "undercut" Kona and serve the entire market or "accommodate" and allow Kona to serve its targeted customers will depend on WTP K , WTPH , FAREK and N. Try to describe, in terms of those variables: a. HA's profits, generally, if it "accommodates" and allows Kona to serve its targeted number of customers N? (Hint: how many customers will HA serve? What is the highest price it can charge to them?) b. HA's profits, generally, if it "undercuts" Kona and steals the the entire market, as a function of WTP K , WTPH , FAREK and N. (Hint: if you know FAREK , WTPK and WTPH , by how much will FAREH have to be lower to ensure that Kona does not serve any customers?) Question 3 can be answered in purely mathematical (algebraic) terms. Alternatively, you may find it helpful to "model" the answers to question 3, in Excel or something like it. See if you can build a simple scenario-building tool where you can input WTPK , WTPH , FAREK and N, and the model will tell you (a) what FAREH would be if HA chooses to undercut, (b) what FARE H would