You are the marketing manger for a firm producing solar powered AC units. Based on your assumptions, each home only needs to purchase 1 AC unit and does not need to be replaced for at least 30 years. Based upon your estimates, you know there are 100 million people in the market. Your last AC product sold 20M units in the first year. In addition, you know the parameter of imitation is equal to .1.

3a) What should be the estimated parameter of innovation that you should use in this model, given your prior experience with AC products? How many units, in total, do you project to sell in the first three years combined? (6 points)