In the Southeast, our neighbor firm supplies nursing homes with mega packs of bandages There is one competitor in the southeast, and nursing homes view our bandage mega packs as exactly the same in quality. The inverse monthly market demand curve for bandage mega packs is P (Q) = 5,000 - Q. The current Cournot market price is determined by the simultaneous production decisions of ourselves (Q₁) and our rival (Q₂), so that total monthly market production is Q = Q₁ + Q₂

The accounting team has informed me that our monthly costs are roughly C₁(Q) = 2,000,000 + 200Q₁, while our competitor's costs are estimated to be: C₂(Q₂) = 500,000 + 800Q₂

It is being considered regarding making a preferred-supplier investment with a Southeast Group Purchasing company to bring our product to the market before our rival (instead of the current situation of simultaneously supplying the market). The preferred-supplier investment will cost us $300,000 per month, and so I would like you to let me know if you think the investment in leadership is worth it.