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Problem 09-12 2 You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered computers to businesses. From the two

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Problem 09-12 2 You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered computers to businesses. From the two businesses perspectives, the two products are indistinguishable. The large investment required to build production facilities prohibits other firms from entering this market and existing firms operate under the assumption that the rival will hold output constant Analysts have determined that the inverse market demand for computers in P5,000 - Q and both firmo produce at a marginal cost of $800 per computer Currently, BlackSpot earns revenues of 5425 million and pronts tnet of investment, R&D, and other fixed costs) of $890,000 The engineering department at BlackSpot has been steadily working on developing an assembly method that would dramatically reduce the marginal cost of producing these high-powered computers and has found a process that allows it to manufacture each computer at a marginal cost of $500 How much will this process improve Black Spots profits? (Hint: Consider solving for the duopoly outcome before and after the change in Blackspot's marginal costs) $ 2.53 mille

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