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In a small town there are two doctor's offices (A and B).Each is considering acquiring a new piece of medical equipment that costs $50,000.Total demand

In a small town there are two doctor's offices (A and B).Each is considering acquiring a new piece of medical equipment that costs $50,000.Total demand in the small town and surrounding area for this new equipment amounts to $75,000. Each firm has to decide whether to get the new technology, and the new patients/business that it will bring in. If both get the new equipment, then they're each paying the full cost for the equipment, and each will get half of the new business. If only one gets the equipment, they still pay the full cost but get all the new business; the other practice would lose $10,000 in business because patients will go to the practice with new equipment.If neither buys, patients do not get access to the new equipment, no costs are incurred, and no new business is generated.

1.What about Practice B, assuming they have to decide without knowing A's choice?

a. Don't get equipment; it won't help anyone

b. Get equipment; maximizes income regardless what A does

c. Get equipment; profit is guaranteed

d. No way to know

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