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a. At what expected postentry price should Billyls Company refrain from entering? (3 points) b. The MRU forecasts q : 2,000 units as Billy's Company's
a. At what expected postentry price should Billyls Company refrain from entering? (3 points) b. The MRU forecasts q : 2,000 units as Billy's Company's sales potential in the short run post entry. At what market price would this production volume turn profitable? (3 points} c. The MRU bought from a data firm demand and price data for the past three years. Based on these historical data they estimated the following empirical market demand-market price relationship QD:100,000(1l0.003)*p With Billy's Company, there would be 11 = 20 firms in the market offering very similar products under the same cost conditions. Calculate the Billy's CompanyTs expected productspecific profits and its Return on-Sales (ROS) post entry. (5 points) (1. Based on c), what are the production incentives for Billy's Company after entry and realization
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