Question: Deciding on Capacity You are a division manager for Wayne Biotech, and are tasked with deciding on the capacity of your new factory for a

Deciding on Capacity
You are a division manager for Wayne Biotech, and are tasked with deciding on the capacity of your new factory for a new ecologically friendly weed killer. A similar new product has been developed by Isley Industries. The demand for the new weed killer is given =482, where is the price, =!+!, and ! and ! are the quantity produced by Wayne and Isley, respectively. Waynes cost of production per unit is 4; Isleys cost of production per unit is 2.
a) Wayne and Isley will simultaneously decide on the capacity of their production facility, i.e., each will simultaneously decide on quantity. What quantity will you produce? What quantity do you expect Isley to produce? What are your expected profits?

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