Consider finally a scenario where you set your capacity first and then your competitor CMC responds. (CMC always chooses its capacity to maximize its profits, given the capacity you chose.) Your capacity First Mover CMC capacity 45 Your profit -650 CMC profit 1825 Scenario 1 20 35 600 1125 Scenario 2 30 0 1700 -100 Scenario 3 40 1900 -100