You work for Lajcox, a firm that produces a digital device called Lx. The engineering department has recently discovered that component al used in Lx is not needed, furthermore, when the engineers removed a1 from Lx, the device used less battery, stayed at a lower temperature when the device was used intensively, and increased its speed in 10%. Laicox is planning to discontinue Lx, and release a new model called Hx, which will use the same design of Lx but without component al. Read sections 1, 2 and 5 of Deneckere, R. J., & Preston McAfee, R. (1996). Damaged goods. Journal of Economics & Management Strategy, 5(2), 149-174, and propose an alternative strategy for Laicox based on the cases and ideas presented in the article. (15 marks)