Two companies, A and B, are in competition with each other. Let x represent the net worth (in millions of dollars) of Company A, and y represent the net worth (in millions of dollars) of Company B. Four trajectories are given in Figure 9.43. For each trajectory: Describe the initial conditions. Describe what happens initially: Do the companies gain or lose money early on? What happens in the long run?

y (worth of B) 4 3 2 1 IV 7/ // 11 7 1 2 3 Figure 9.43 4 x (worth of A)