Question:

Consider the following variant of the Dixit model that we discussed in class: In the market for microwaves, there is an incumbent (firm 1) and a potential entrant(firm 2). The demand function is given by: P = 60?0.01(q1 +q2) where q1 is the output of the incumbent and q2 is the output of the entrant. Firms need two units of labourand one unit of capital to produce one unit of output. Labour costs w = 10 per unit and capital costsr = 15 per unit. In addition, the entrant has to pay a fixed cost of F2 to enter this market. At period T = 1, the incumbent chooses a level of capital investment K?1 and at time T = 2, firms compete in quantities by buying inputs and producing outputs

a)What is the range of possible levels of investment for firm 1 that could be a part of the equilibrium for this game? That is, what is the lowest K?1 that could be an optimal choice for firm 1 for some values of firm 2's fixed cost F2? What is the highest K?1 that firm 1 could optimally choose?

b)What is the equilibrium outcome and profits of this game if the entrant has fixed costs F2 = 1000?

c)What is the equilibrium outcome and profits of this game if the entrant has fixed costs F2 = 2500?

d)What is the equilibrium outcome and profits of this game if the entrant has fixed costs F2 = 4000?

Please answer all parts with a step by step explanation in detail.

Question 6 1 pts Rob owns Solar Panels Corporation, He uses Solarl's funds to pay his personal expenses, creates Thermal Power Inc. to engage in the same business as Solar, transfers Solar's assets to Thermal, and petitions Solar into bankruptcy. This most likely warrants O a bonus to Rob for financial maneuvers. O a discharge for Solar in bankruptcy. O a pierce of the corporate veil. O a review of Thermal's articles of incorporation.QUESTION 3 A valid contract can be discharged by the parties. Discuss how a contract can be discharged in contract law.7. What are two main differences between the disciplines of business process management and business project management? (Hint: When does business process management need project management? Is business process management a one-off effort?)