Please answer this ASAPThanks Ex 3.1Use the previous text.The general director must decide:2000 units of product B is sold at the price of 24€ If the principle competitor cuts the price to 20€, Beta could havetwo alternatives:a. Take price unchanged, sell only 1500 units of B;b. Cur the price to 20€ and continue to sell 2000 units of B.What decision is the most convenient for the company? Ex 3.2Use the previous text.Calculate the Breakeven point revenue for the company, assuming a product mix of 35%, 40% and 25%, and price20 €, 24 € and 14 €.

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Ex 3.1 Use the previous text. The general director must decide: 2000 units of product B is sold at the price of 24€. If the principle competitor cuts the price to 20€, Beta could have two alternatives: a. Take price unchanged, sell only 1500 units of B, b. Cut the price to 20€ and continue to sell 2000 units of B. What decision is the most convenient for the company?

Ex 3.1 Use the previous text. The general director must decide: 2000 units of product B is sold at the price of 24€. If the principle competitor cuts the price to 20€, Beta could have two alternatives: a. Take price unchanged, sell only 1500 units of B, b. Cut the price to 20€ and continue to sell 2000 units of B. What decision is the most convenient for the company?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter18: Asymmetric Information

Section: Chapter Questions

Problem 18.3P

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