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D Question 28 5 pts (5 points) Suppose the incumbent could invest in a technology that would enhance its current product. This new and improved
D Question 28 5 pts (5 points) Suppose the incumbent could invest in a technology that would enhance its current product. This new and improved product would completely block the new entrant. What is the maximum the incumbent would pay for such a technology? The entrant is still constrained to charging $185. D Question 30 4 pts (4 pts) Assume the Consumer Price Index increases from 110 to 121, and Mary's nominal income increases from $100,000 to $120,000 over the same period. Calculate the percentage change in Mary's buying power. Enter the answer below in terms of percentage point change (Le. a 4.3% increase would be entered as 4.3)
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