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Suppose that you are the owner of a brand of energy drink, called ACTIVE (which competes with brands

such as Red Bull, Monster etc.).

And the optimal price (profit maximizing) of ACTIVE is $ 1.4.

Suppose that you introduce a second brand of energy drink, called HIGH ENERGY. Now, you own a portfolio of two brands, ACTIVE and HIGH ENERGY.

In this scenario, will you find it optimal to maintain the price of ACTIVE at the optimal price of $1.4 or increase it or decrease it? Why? Explain the rationale for your answer

(no calculations are necessary).

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