Economic

You are the manager of tarus technology

You are the manager of Taurus Technologies. and your sole competitor is Spyder Technologies. The two rms' products are viewed as identical by most consumers. The relevant cost functions are (IQ) = 40,-. MC=4. and the inverse market demand curve forthis unique product is given by P = 160 - 20. Currently. you and your rival simultaneously [but independently} make production decisions. and the price you fetch for the product depends on the total amount produced by each rm. However. by making an unrecoverable xed investment of $200. Taurus Technologies can bring its product to market before Spyder nalizes production plans. Show your calculations to get credit 1. What are your prots if you do not make the investment? [5 points} 2. What are your prots if you do make the investment? [5 points} 3. What are your prots if you do not make the investment but instead acquire your competitor? {4 points}