Market Research - the price are same s prices is theequal...

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t the price is the same and the quantities are different additional feature resulted in 400 more units demanded nits cost 100 to make, then their value is 400 (210-100) = $44,000 00 value came from the 1700 units 44000/1700=$25.9 per unit A advertised less than firm B then features values > $25.9 alue = (20 * 1300) = $26,000 rtising value – Advertising Cost) / Additional Advertising 0 – 10,000) / 10,000 demand – Firm B demand) = Difference in Advertising ms’ prices are equal oss profit Margin = $30 alue = Additional Quantity Sold * Gross Profit Margin tising value – Advertising Cost) / Additional Advertising ) / 10,000 = 20% Value of a Feature in USA Worl d Firm Tec h Pric e Feature s Deman d Advertising Val ue Narnia A 1 240 2 1300 10,000 =$40 B 1 200 1 1300 10,000 Worl d Firm Tec h Pric e Feature s Deman d Advertising Val ue Pluto A 1 240 2 1200 10,000 <$40 B 1 200 1 1300 10,000 Worl d Firm Tec h Pric e Feature s Deman d Advertising Val ue Mars A 1 220 2 1400 10,000 >$20
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Market Research - the price are same s prices is theequal...

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