Problem 1. Apple is a monopolist on the iPad market. The price elasticity of demand for iPads is -2 and the price of a new iPad is $500. (1.1) If Apple is pricing iPads optimally, what is the marginal cost of an iPad? (1.2) Suppose that, due to a manufacturing problem, the production cost increases by $50 per iPad. How much should Apple charge for an iPad after the cost increase? Justify.Problem 4. rl'en pirates, ranked 10 to 1 in order of ferocity. have to share 10 gold coins. An allocation is a list of ten numbers indicating how many coins each pirate obtains at the end of the game. For example. ([1, 10.. f], 0.. 0.. f], 0.. 0, 0,0} is an allocation in which player 9 [the second most ferocious] keeps all coins. Only integer allocations are allowed, because pirates wouldn't trust each other for fractional allocations. Here is honr the}; do it: the most ferocious {player 10] rst proposes a division. If at least onehalf of the pirates on the ship, including the proposer, vote in favor of the division then it is enforced; if not. player 10 is thrown overboard and the game continues with the remaining 9. 1f player 9's proposal is rejected we have an 8 player game and so on. The worst outcome for a pirate is to be thrown overboard. Everything else equal, pirates like to throw another pirate overboard. [4.1] Use bacszu'd induction to predict the lial allocation of coins