Assume that the variable profit of a firm with marginal cost c is given by A/c , where A is some positive constant. Thus, the total profit of the firm is A/c F (and the fixed cost F must be paid before the firm learns its marginal cost c)

If for all firms in a market, a new technology becomes available (say, they can buy a computer to speed up their production). Buying a computer reduces a firm's marginal cost from c to c/2 , and has a cost FC . Will all firms choose to buy computers? If not, which firms will and which firms will not?