NHH (N) has just won the award for "greatest international potential" in the NM for

student companies. Their product is very innovative, and N is about to get Norwegian and global

patent. At the same time and by chance, the student company Babson (B) in the USA has invented a (almost)

identical product, based on a different technology; also B is applying for a global patent. There is no

other competitors / competitive products in the market, the products can be considered perfect

substitutes. Both companies will soon be ready to start production and distribution of the two

(almost) identical products. World demand for the product is expected to be large and well

diversified across many countries and industries. Both companies expect that the demand per

month is given by:

P = 1 000 - 5Q

where P = price per product unit, Q = total turnover per month in the global market

N's cost function is given by