Can you please help

The setting is the same as Question 1, but firms now know that with some expenditure in R&D a process innovation may be developed that would bring the cost to c' = 1. But the firms do not know how to compute the money they should be willing to spend (value of the innovation for each firm, if the innovation is developed at the same time by both firms). Economist A proposes to estimate the new profits by multiplying the current price minus the new cost by the current output and compare with the current profits. What is your criticism of this estimate