1.It is also found out that recently our competitors are upgrading some new kinds of dry-cleaning machines, which may help fast drying, cleaning more garments with the same or even less labor. The new machines is advanced with so-called "green-dry system", which is a new detergent-free dry cleaning system, being capable in causing less greying and therefore more hygienic and no damage to garments. Our customers may like this green-dry with the higher quality features. However, the new green-drying machines are so expensive; additionally, the investments in this machinery may require additional costs for building a closed system of waste disposal and maintenance. Nam is proposing to buy the new machines. But Tony is arguing that the competition in the market is higher with more pressure on price to fall and he believes the investments in machinery may not help the firm's revenue generation. Tony argues that the profitability of this kind of business is likely to decrease; therefore, he suggests to quit doing this business".

What will you correctly reply to your friends regarding to their questions? Explain your answers by the emphasis on the role of the machinery investments for the firm's economic profit in long-run.

(The position of which manager's argument students agree more has been clearly confirmed; With excellent demonstration of pros and cons of the machinery investment for the firm's economic profit in long run; With exhaustive explanation for the effects of the differentiated green-drying quality to the firm's revenue generation compared and contrasted with the effects to the firm's costs in production. Additionally, an excellent graph illustration has been presented (correctly labelled and consistently confirmed the written analysis).

Dear tutor, please drop me a hint. It seems like no calculations are needed for this question. But then how to pinpoint exactly the right manager. As well, which graph should I make???