Question 3: 25 points. Genvet Pharmaceuticals Inc. sells many products in the veterinary pharmaceutical market. Its newest product, Tymacin, is a. growth hormone for cattle and hogs. The cost of developing and testing Tymacin (now sunk) was $32 million. The marginal cost of producing and marketing Tymacin is $7 per bottle. Tymacin can be used by both hog farmers and cattle ranchers. Both farmers and ranch- ers currently purchase competitive growth hormones through independent distributors of agricultural supplies. The same distributors carry products for both of these markets. In the hog market, the price of closest substitute is $11 per bottle, and two bottles are needed per ton of feed to achieve optimal growth. Since Tymacin is more concentrated, each ton of feed requires only one bottle of Tymacin for equal effectiveness. Otherwise, Tymacin is no more effective than competing products in making hogs grow faster and bigger. . In the cattle market, the price of the closest substitute is $24 per bottle, and one bottle is needed per ton of feed to achieve optimal growth. The amount of Tymacin needed in this market is also one bottle per ton of feed, but Tymacin is more effective at increasing \"feed efciency (the amount of weight gained for every ton of feed that an animal eats).\" The value of this increased feed efciency is estimated at $7 per ton of feed. The sales potential for Tymacin is 3.1 million pounds for the hog market and 1.8 million pounds for the cattle market. Assume that Genvet is unable to keep customers in one market segment from buying and using the product intended for the other segment. a)What is the economic value of Tymacin in the hog market? b)What is the economic value of Tymacin in the cattle market? c)I-Iow would you price Tymacin to maximize protability