1. ROSS and MIC produce 2 different cars. Each firm can be aggressive in advertising and marketing. If only one of the 2 firms choose high advertising the NPV of that firm would be $200M whereas the NPV of the other firm would be $100M. If both firm decide low advertising than the NPV of each car would be $500M. Draw the extensive form of the game.
2. Explain the differences between technical risks, business risks, and competitive risks.
3. How do we finance R&D? Explain all the steps.