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Option B is based on the investments in developing the key generation system and the required encryption software. According to this method of price setting,

Option B is based on the investments in developing the key generation system

and the required encryption software. According to this method of price setting,

the development costs are divided by the level of expected demand to determine

the price. How would you estimate the level of expected demand for this kind of

product? What other information would you like to have, besides the

development costs and expected demand?

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