Canon vs Nikon

Canon and Nikon are two competing companies who specialise in technology such as imaging and optical products. In this hypothetical scenario, both companies have to decide whether to:

1. Invest in R&D
2. Not invest in R&D

Consider the following hypothetical scenario, and use it to populate the matrix below:

• If Nikon and Canon both do not invest in R&D, then they will make a profit of $2 and $3 million respectively.
• If Nikon invests in R&D for its products but Canon does not , then Nikon will make a profit of $5 million whereas Canon will make a profit of $15 million.
• If Nikon and Canon both invest in R&D then they will make a profit of $8 and $13 million respectively.
• If Canon invests in R&D but Nikon does not, then Canon makes a profit of $7 million while Nikon makes $10 million as its profits.

Enter numbers in terms of $millions i.e. if your answer is $20 million, simply enter 20 without the $ or the word million. Once you have completed the matrix, click ‘Evaluate’ to check your answer and continue to the next step.