Consider a cocoa processor who wants to source cocoa beans from a single supplier using quantity flexibility contract $($r$,$e$)$ where r denotes the unit reservation price and e denotes the unit exercise fee. The processor reserves some amount of cocoa beans from the supplier in advance of the selling season by paying unit fee r$.$ Closer to the selling season, once the processor has a better understanding of its needs, the processor can decide to exercise the contract and ask the supplier to deliver some $($or none or all$)$ volume of cocoa beans within the reserved volume by paying unit fee e$.$ At this time, cocoa beans can also be sourced from a spot market. The spot market price of cocoa beans is uncertain at the time of reservation and it can be higher or lower than e at the time of exercise. a$)(1\mathrm{.}5$ points$)$ There are two suppliers offering contracts to the cocoa processor. Supplier $1$ offers the contract $(50,40)$ and Supplier $2$ offers the contract $(40,30).$ Which supplier should the cocoa processor choose? Why? Please use your intuition in answering this question. b$)(1\mathrm{.}5$ points$)$ There are two suppliers offering contracts to the cocoa processor. Supplier $1$ offers the contract $(50,40)$ and Supplier $2$ offers the contract $(40,50).$ Which supplier should the cocoa processor choose? Why? Please use your intuition in answering this question.