8. In this chapter's Headline, we learned that Barkley Enterprises benefits by announcing well in advance of the trade show that its new marketing plan will target professionals. Suppose you are an executive at Sharpe, and by lucky electronic happenstance, your cell phone picks up Roger Planter's call. As a result, you learn that Barkley will announce its plan to target its latest product to professional users in two months. What plan of action should you take? Explain.

13. Suppose that, prior to other firms entering the market, the maker of a new smartphone (Way Cool, Inc.) earns $100 million per year. By reducing its price by 50 percent, Way Cool could discourage entry into "its" market, but doing so would cause its profits to sink to $5 million. By pricing such that other firms would be able to enter the market, Way Cool's profits would drop to $75 million for the indefinite future. In light of these estimates, do you think it is profitable for Way Cool to engage in limit pricing? Is any additional information needed to formulate an answer to this question? Explain.

14. During the early days of the Internet, most dot-coms were driven by revenues rather than profits. A large number were even driven by "hits" to their site rather than revenues. This all changed in early 2000, however, when the prices of unprofitable dot-com stocks plummeted on Wall Street. Most analysts have attributed this to a return to rationality, with investors focusing once again on fundamentals like earnings growth. Does this mean that, during the 1990s, dot-coms that focused on "hits" rather than revenues or profits had bad business plans? Explain.