$2.$ Two rival tech companies, TechGiant and InnoTech, operate in the cloud computing space.

Both offer server options for their clients, but their infrastructure is nearing capacity. They

have two options:

$$ Invest in Upgrade: This requires a significant upfront cost, but it will significantly

expand their server capacity and allow them to attract new clients. However, if the

market remains stagnant, both companies might face overcapacity and reduced

profits.

$$ Maintain Current Capacity: This avoids the upfront cost but limits their ability to

grow and potentially attract new clients. However, if the market experiences a sudden

boom, both companies might miss out on profitable opportunities.

A$.$ Modeling as an extensive form game for Q$12025.$

B$.$ Then model as an extensive form for the fiscal year $2025.$

C$.$ What are the key strategic differences when looking at two different timeframes?

D$.$ How will the model change if a new competitor enters in Q$32025?$