(3) Consider a soft (cola) drinks market where two firmsFirm A and Firm B-compete for market shares given by the multinomial logit (MNL) functions below: Ma = e-0.2*PA e-0.2*PA+e-bB*PB -bB*PB and MB = e-0.2*PA+e-bB*PB' where HA and up respectively denote the market shares of Firms A and B when its corresponding products are priced at PA and pa; moreover, price sensitivity parameter for Firm B's customers, i.e, bb, is unknown to youFirm A's marketing/pricing specialist. However, your past marketing/pricing data suggest that bg is between 0.2 and 0.8. a) (2 pts) Use the data set given in the table below to determine the value of bb. Price of Firm A Price of Firm B Market Share of Firm A Market Share of Firm B 1 1 0.549833997 0.450166003 2 2 0.59868766 0.40131234 Table 1: Market shares of Firms A and B under two different price combinations Page 1 of 2 Fall 2020 Due: Thursday, October 1, 2020 At the beginning of the class b) (2 pts) As a newly hired marketing/pricing manager of Firm A, your goal is to increase your market share up to 70% when both firms price the product at $2.50. You decide to launch a new marketing/branding campaign to improve the product awareness and brand loyalty of your product, and thereby reduce the value of bA to increase the market share (a). What is the target value of b that takes your firm's market share to 70%? (3) Consider a soft (cola) drinks market where two firmsFirm A and Firm B-compete for market shares given by the multinomial logit (MNL) functions below: Ma = e-0.2*PA e-0.2*PA+e-bB*PB -bB*PB and MB = e-0.2*PA+e-bB*PB' where HA and up respectively denote the market shares of Firms A and B when its corresponding products are priced at PA and pa; moreover, price sensitivity parameter for Firm B's customers, i.e, bb, is unknown to youFirm A's marketing/pricing specialist. However, your past marketing/pricing data suggest that bg is between 0.2 and 0.8. a) (2 pts) Use the data set given in the table below to determine the value of bb. Price of Firm A Price of Firm B Market Share of Firm A Market Share of Firm B 1 1 0.549833997 0.450166003 2 2 0.59868766 0.40131234 Table 1: Market shares of Firms A and B under two different price combinations Page 1 of 2 Fall 2020 Due: Thursday, October 1, 2020 At the beginning of the class b) (2 pts) As a newly hired marketing/pricing manager of Firm A, your goal is to increase your market share up to 70% when both firms price the product at $2.50. You decide to launch a new marketing/branding campaign to improve the product awareness and brand loyalty of your product, and thereby reduce the value of bA to increase the market share (a). What is the target value of b that takes your firm's market share to 70%