Question: If not, explain why it is not possible. ( 0 marks - not graded, solution will be provided after the due date) Answer: (a3) How

(a3) How much profit will the manufacturer make as a result? Answer:

If not, explain why it is not possible. ( 0 marks - not graded, solution will be provided after the due date) Answer: (a3) How much profit will the manufacturer make as a result? Answer: 1690> (a4) What is the total expected profit of the manufacturer and the retailer? Answer: 3100> What is the system optimal production quantity and expected profit under global optimization? (2 marks) Answer: produce , expected profit =??? 3100> Suppose the manufacturer is make-to-order, is it possible to find an option contract such that both the manufacturer and retailer enjoy a strictly higher expected profit than (a)? If so, describe the contract and calculate the expected profit for the manufacturer and the retailer

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