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Suppose that two firms, A and B, are selling differentiated goods and are competing in prices, in a market similar to Hotellings model. Suppose that

Suppose that two firms, A and B, are selling differentiated goods and are competing in prices, in a market similar to Hotellings model. Suppose that you work for firm A, and that your boss proposes to invest an amount X to increase the product differentation. Explain how you would proceed to determine if that investment is a good idea. Suppose first that firm B has no similar opportunity. What if firm B simulateneously can make the same investment? DONT copy paste answer already provided on chegg its wrong

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