Wayne Inc. designs armored suits for young executives. Bane Ltd. is a potential entrant to the market. Suppose that if Bane enters the market, both Wayne and Bane produce a homogenous armored suit (that is there is no dierentiation between the two products), where the market clearing price p is given by p = 110 q1 q2; with q1 is the quantity sold by Wayne Inc., and q2 is the quantity sold by Bane Limited. Suppose that if Bane enters, both rms compete by simultaneously choosing a quantity (i.e. they compete a la Cournot). Banes production function is such that he needs to incur a xed, sunk cost of F to enter the market, after which it can produce at a marginal cost of 10. Wayne enterprise, however, can invest in R