What are your profits if you do make the investment?

You are the manager of Taurus Technologies and your sole competitor is Spyder Technologies. The two Show more You are the manager of Taurus Technologies and your sole competitor is Spyder Technologies. The two firms products are viewed as identical by most consumers. The relevant cost functions are C(Qi)=4Qi and the inverse market demand curve for this unique product is given by P=160-2Q. Currently you and your rival simultaneously (but independently) make production decisions and the price you fetch for the product depends on the total amount produced by each firm. However by making an unrecoverable fixed investment of $200 Taurus Technologies can bring its product to market before Spyder finalizes production plans. What are your profits if you do not make the investment? What are your profits if you do make the investment? Should you invest the 200? Show less

Posted in Uncategorized