Hello, I need assistance on how to solve these two homework problems. If you can show steps it be great help. Thanks!

La Copy Times New Roma - 12 : A A Parite Formal Painter BIU - - 4 . A. Merge & Center . $ Clipboard Fant Alignment ES X 35 2) Competitive Capacity Choices You are one of two competitors in a market for computer memory, Computer memory is essentially a commodity product, so there is almost no differentiation and pric price is determined by supply and demand. Manufacturing facilities ( fabs') are very capital intensive and therefore nin at capacity Capacity decisions are made long in advance of actual production and are difficult to change. Since you can't influence the price directly, your only choice is your level of capacity (which influences price indirectly). You and your competitor have identical cost structures: a cost of 10 per unit of capacity plus an overall fixed cost of 100 Your competitor, CMC, has already (irreversibly) committed to its level of capacity. Now it is your turn to choose capacity. (Your competitor's capacity choices are not necessarily optimal. The focus here is on how your optznal response depends on your competitor's choice ) Please find your optimal capacity under the following 3 scenarios, which all have the exact same market structure but differ in the capacity chosen by your competitor. (You should try out different capacities to find the best one To speed the process, it suffices to consider multiples of 5.) CMC capacity Your capacity CMC profit Your profit Scenario / 20 600 1125 Scenario 2 30 1700 -100 Scenario 3 40 1900 -100 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 CMC capacity Your profit First Mover CMC profit 45 -650 1825 -.. . O 213 9-713-304 1 Positioning Please proceed to the next worksheet Type here to search 2) Capacity Choice 3) Price Competition 4) Number of Competitors