The cost of producing a low-quality cup is $100. If the producer uses high-quality row material it cost the firm $150 to produce a high-quality cup. Both cups look like completely the same and there is no way for Consumers to distinguish between two kinds of cups when they make their purchases. There are four firms in the mark producing cups. Consumers value cups at their cost of production and are risk-neutral. (a) Will any of the four firms be able to produce high-quality cups with out making losses? Explain. (7 pts) (b) What happens if consumers are willing to pay $420 for high-quality cups