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1. Proctor and Gamble Proctor and Gamble currently produces a soap product for the U.S. market. The market demand for the product is: P =90

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1. Proctor and Gamble Proctor and Gamble currently produces a soap product for the U.S. market. The market demand for the product is: P =90 - 0.50. where P is the price in cents and Q is the quantity in millions of units per year. The total cost function is: TC = 10Q Remember cost is expressed in cents! The marketing department proposes spending $1 million per year on a campaign to market the soap as two different products: the first product would cater to the more price sensitive consumers, and the second would be marketed as a premium brand (even though the products are identical). The $1 million annual cost of the campaign represents the cost of segmenting the market. The demand of the price sensitive segment is: P1= 80 - On while the demand for the premium brand is P2 = 100 - Q2. Question: Should P&G adopt the advertising campaign? Why or why not? You need to fully explain and support your

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