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1. Suppose that you are the owner of a brand of energy drink called ACTIVE, which competes with brands such as Red Bull, Monster, etc.
1. Suppose that you are the owner of a brand of energy drink called ACTIVE, which competes with brands such as Red Bull, Monster, etc. Suppose that the price elasticity of ACTIVE is -2.5 (as revealed by the analysis of historical data on sales and prices of ACTIVE over the past two years). a. You are contemplating a price cut of 10% on ACTIVE. What is the minimum profit margin on ACTIVE at which this price cut will be profitable
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