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Question 5 (10 marks) Two firms Sony and RCA are looking to obtain a patent for a new technology. Redo the sketch of the R & D model discussed in class with the assumption that the cost of moving 1, 2 and 3 steps are $4, $10 and $15 respectively. The value of the patent remains at 20. Then answer the following questions: The coordinates are represented by the distance to the finish line in the same way as discussed in class i.e. (r, s) a. Suppose the firms are initially located at points (3, 4) and it is Firm R's turn to move. What will R do? What will S do in its turn? What are payoffs to each firm? b. Suppose the firms are at (5, 5) and S is the first mover. What will S do? What will be payoffs to each player? End R End S