Question 7 A manufacturer of flash drives has a profit function * = t - 9q- where t is the price charged for a flash drive and q is the cost of Not yet answered producing a drive whose capacity is q gigabytes. A consumer of type @ has a utility function u = 0q - t, where 0 takes on a value of 15 for H-type consumers, or 8 for L-type consumers. There are 10 consumers of each type. A consumer gets zero utility if she does not buy. Marked out of 6.00 Answer the following. If rounding is needed, round to 3 decimal points. Flag a) (0.25 point) Suppose (qz, tL) is the optimal (profit maximising) capacity-price bundle for L-type consumer under complete information. question What is the value of f _ ? b) (0.25 point) Suppose (q #, ( H) is the optimal (profit maximising) capacity-price bundle for H-type consumer under complete information. What is the value of t H ? c) (0.5 points) What is the seller's overall profit under complete information? For part d) - i), assume information is asymmetric. d) (0.5 point) Suppose that the seller continues to offer the capacity-price bundles that maximises his profit under complete information: that is, he offers (qL, f1) and (9 H, TH). What is the utility for the type Oz consumer from buying the (q H, t H) bundle? That is, what is un (q H, t H)?e) (1 points) What is the utility for the type 3;; consumer from buying the (1, 51,} bundle? That is' what is uHL, E)? f) (1 point) What are the seller's profits if he offers the bundles (EL, 21,} and {q'm EH) when information is asymmetric? Now suppose the seller decides to offer a menu of capacity-price bundles (1H,, IL} and (gm t3) to incentives the two types of consumers to sort themselves out. Answer part 9) to i) in this context. 9] [1 point] ForH -type consumer, what is the optimal [profit maximising] level of q? hi (1 point] Suppose (13;, ii} is the optimal (prot maximising} capacity-price bundle for L -type consumer under asymmetric information. What is the value of ti ? i) (0.5 poi ntsl What is the seller's overall prot under asymmetric information if the seller offers a menu of profit maximizing ca pacity-prioe bundles {qb IL) and (q. tH) to consumers