Suppose that there are four research tools, each owned by a different individual and protected via a patent. All four tools are required to develop an application. Suppose that the demand for the tools to develop applications is given by P1 + P2 + P3 + P4 1000 Q, where Q is the number of applications developed (licenses granted). The marginal cost of reproducing the tool is zero. a. Suppose that the four owners decide to form a patent pool and sell access to all four patents together. What price will they charge to maximize profits? How many licenses will they grant? b. Suppose they decide to split the profits evenly. What profits will each owner earn? Now, suppose that the owners were to act independently. Show that each owner will set a price of P1 = P2 = Pz = P4 = 200. How many licenses are sold? What are each owner's profits? d. Using your answer above, along with the lecture notes, why might more complex industries (such as tech) benefit from patent pools and research joint ventures more than less complex industries? C. Suppose that there are four research tools, each owned by a different individual and protected via a patent. All four tools are required to develop an application. Suppose that the demand for the tools to develop applications is given by P1 + P2 + P3 + P4 1000 Q, where Q is the number of applications developed (licenses granted). The marginal cost of reproducing the tool is zero. a. Suppose that the four owners decide to form a patent pool and sell access to all four patents together. What price will they charge to maximize profits? How many licenses will they grant? b. Suppose they decide to split the profits evenly. What profits will each owner earn? Now, suppose that the owners were to act independently. Show that each owner will set a price of P1 = P2 = Pz = P4 = 200. How many licenses are sold? What are each owner's profits? d. Using your answer above, along with the lecture notes, why might more complex industries (such as tech) benefit from patent pools and research joint ventures more than less complex industries? C