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1.X is about to introduce a breakthrough innovation a product A which is not available in the market and has no direct or system competitors.

1.X is about to introduce a breakthrough innovation a product A which is not available in the market and has no direct or system competitors. The product A could be offered in two versions A1 and A2 or without versioning (one product A). Versioning makes only sense if there are two separate customers' segments S1 and S2.

With probability 40% there is only one segment of customers and market demand is estimated to be Q(P)=2600-10P. With probability 60% there are two segments with demand for A1 and A2 estimated for Q(P1)=2200-10*P1 and Q(P2)=220-P2 respectively. When there are two customer segments and only one product will be marketed then for both customer segments A is attractive option. If there is only one customer segment and two product version will be offered, then only the cheaper product will be sold.

The variable production and sales costs of A and A1 and A2 are exactly the same C(Q)=0.4Q^2 and fixed costs in single-product case are 100 per version.

A market research agency could forecast the number of segments with accuracy 80%. Their services are very expensive. How much their service is worth for X? Please calculate and explain your approach.

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