Making investment decisions

Reference no: EM1314707

You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two firm's products are viewed as identical by most consumers. The relevant cost functions are C (Qi) = 2Qi, and the inverse market demand curve for this unique product is given by P = 50Q. Currently, you and your rival simultaneously (but independently make the production decisions, and the price you fetch for the product depends on the total amount produced by each firm. However, by making an unrecoverable fixed investment of $40, Taurus Technologies can bring its product to market before Spyder finalizes production plans. Should you invest the $40? Explain.

Reference no: EM1314707

Questions Cloud

Determine the breakeven point in dollars : Prepare an Income Statement of Actual Results using variable costing and Determine the breakeven point in dollars.

What is the car''s speed at the bottom of the dip : The mass of a roller-coaster car, including its passengers, is 495kg. Its speed at the bottom of the track in the figure below is 17.00 m/s. The radius of this section of track is r1 = 26 m. Find the force that a seat in the roller-coaster car exerts..

Desired level of confidence : The estimated salary range is $4,500, the margin of error should be $100 and the desired level of confidence is 95%.

What is meant by the term participative budgeting : Explain what is meant by the term "participative budgeting" and how the term relates to the current situation and How would you recommend the Mr. Sparks change the budgeting procedures to gain more support from department managers

Making investment decisions : You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two firm's products are viewed as identical by most consumers.

What is the total distance travelled : You and the friend each drive 47.0 km. You travel at 87.0 km/h; your friend travels at 98 km/h. How long will your friend wait for you at the end of trip.

Multiplication rule for algebraic expression : Multiplication rule for algebraic expression.

Prepare a cash budget for march, april, and may : Budgeting involves computation of cash budget - which is also its minimum required cash balance. There is an outstanding loan of $2,000 on March 1. Prepare a cash budget for March, April, and May.

What is the tension in rope while the load : An unmarked police car travelling a constant 80 km/h is passed by the speeder travelling 100 km/h. precisely l.0s after the speeder passes, the policeman steps on an accelerator; if the police car's acceleration is 2.0m/s2, how much time passes befor..

User Account

All Pages