Two rms, AbleCow and Betsy's Pride, are competing in the market for milk in Lean City. AbleCow rm sells only 2 percent milk, while Betsy's Pride sells only skim milk, which is 0 percent milkfat. There is a measure of 100 consumers {assuming they are divisible) in Lean City who have varied taste for milk. Specically consumers' ideal percentage of milkfat is uniformly distributed between 0 and 2. Consumers value their ideal percentage milkfat milk at $12 per litre. For other milk, they are willing to pay $2 less for each percentage point that milk differs from their ideal. The two rms set prices simultaneously. The cost of milk for both rms is $2 per litre. Only onelitre cartons of milk are available. Consumers buy at most 1 litre of milk. Note: Input numerical answers only. Do not input notations such as "3" and For fractions such as one half, write it as 0.50 rather than U2. Please keep 2 decimal places in your answers whenever possible. a) [1 mark] Suppose the price of AbleCow {pa ) is $1 and the price of Betsy's Pride's {1'05 ]| is $5, the demand ofAbleCow is I I + b) [2 marks] The best reponse function of AbleCow is c] [1 mark] The equilibrium prices of this game is d) [2 marks] The prot of each rm is e) [2 marks] The consumer surplus is