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am dfgif.pdf.pdf X + X C Archivo | C:/Users/Allison%20Alvarez/Downloads/dfgif.pdf.pdf 1 de 9 Q + P Machine Translated by Google Case 1: An established company and
am dfgif.pdf.pdf X + X C Archivo | C:/Users/Allison%20Alvarez/Downloads/dfgif.pdf.pdf 1 de 9 Q + P Machine Translated by Google Case 1: An established company and a potential entrant are weighing the decision to adopt a new technology that reduces the variable costs of production, but requires an initial investment. The established company regularly operates with old technology, the initial investment of which can be considered a sunk cost. Of course, the potential entrant is not operating in the market. Let us call CVn and CVv the variable costs of the new and old technology, respectively. Likewise, let In and Iv respectively be the initial costs of the new and old technology. As we have said, CVn
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