10. Three business magazines, Business Today, Business Line and Business Life, compete for advertising shares in a...

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10. Three business magazines, Business Today, Business Line and Business Life, compete for advertising shares in a city. At the end of last year, Business Today had 40 per cent of the market while its competitors Business Line and Business Life each had 30 per cent of the market. During the last year, total revenue for the three magazines was Rs 5 million and Business Today had a net profit of 15 per cent of its revenue. Both these figures are expected to remain the same for next year. The manager of Business Today has suggested a policy whereby it would retain 88 per cent of its customers while gaining 12 per cent of customers of Business Line and 8 per cent of customers of Business Life.

Business Line is expected to retain 85 per cent of its customers while gaining 7 per cent customers of Business Today, and 10 per cent of Business Life. Finally, Business Life would retain 82 per cent of its customers and gain 5 and 3 per cent of Business Today and Business Line, respectively. If the above policy would cost Rs 50,000, do you think it is advisable for Business Today to adopt it?

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