(Solution) - Refer to Problem 7 Now suppose the European government wants -(2025 Original AI-Free Solution)

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Refer to Problem 7. Now suppose the European government wants Airbus to be the sole producer in the lucrative small-aircraft market. Then answer the following:
a. What is the minimum amount of subsidy that Airbus must receive when it produces small aircraft to ensure that outcome as the unique Nash equilibrium?
b. Is it worthwhile for the European government to undertake this subsidy?