Problem 4: This problem is presented on pp. 154454? of the textbook. Consider the following situation: - The Brazilian government awards two rms, Motorola and Sony, the exclusive rights to share the market for cellular phones service in Brazil - The maximum charge allowed by the government of Brazil - $800 annually per customer; both firms expect to charge the max price - Both rms can provide either analog or digital cellular phone. Motorola has a cost advantage in analog technology, and Sony has a cost advantage in digital technology. The annual costs per customer is given in the table: Annual cost of $250 $400 analog service Annual cost of $350 $325 digital service - Demand forecast: Brazilians do not care which technology they buy, but total sales will suffer if different technologies are introduced: - If same technology 50,000 customers at \".68le {25,000 each rm) - If different technologies - 40,000 customers at $300lyr (20,000 each rm} - Each rm is making the choice of technology to provide analog or digital. Answer the following questions (show your calculations}: 1} Suppose both Motorola and Sony provide analog cellular phones. What will be the prots of Motorola? the prots of Sony? 2} Suppose both Motorola and Sony provide digital cellular phones. What will be the prots of Motorola? the prots of Sony? 3} Suppose Motorola provides analog cellular phones. but Sony - digital. What will he the prots of Motorola? the prots of Sony? 4} Suppose Motorola provides digital cellular phones. but Sony - analog. What will he the prots of Motorola? the prots of Sony