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You company is currently charging a price given below as Current price for a raz demand in MM razors per year. The variable cost of
You company is currently charging a price given below as "Current price" for a raz demand" in MM razors per year. The variable cost of producing a razor is given be of demand for razors is given below (use this information to determine the second demand curve and determine the slope and intercept. Assume that the average "blades/razor" blades and that you earn "profit/blade" per blade. Using the pricing with tie-ins model, determine how much you should charge fo $MM) from selling razors and blades. Current price: 5.5 Price elasticity: 2.5 Optimal p For slope a Current demand: 4 million razors slope: intercept: A blades/razor: 35 Unit cost: $ 2.00 profit/blade: $ 0.14
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