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please answer the following 4. Screening A seller is selling some production to some buyers. I Buyer's utility function is given by: u(v, q, t)

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4. Screening A seller is selling some production to some buyers. I Buyer's utility function is given by: u(v, q, t) = v - q t Her willingness to pay for quality: 17 6 {1,2,3}. q: quality of product t: price (monetary transfer) Seller has cost of production: (IQ) = q2 The prot is given by: t 601) Seller does not know buyer's willingness to pay but knows the distribution: 1 1 2 .. 4 Prob(v = 1) = ; Prob(v = 1) = ,1} ;Prob(v = 3) = Solve for the second degree price discrimination pricing strategy. [Hintz Seller wants the lowest type to participate and does not want high type to pretend to be low type.]

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