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Economics

Imagine that you manage a company that has invested $5 million in developing a new product, but has not completed development. At the last meeting, your salespeople report that the arrival of new competing products has reduced expected sales of your new product to $3 million.

If it would cost $1 million to finish development and make the product, should you do so?

What is the most you should pay to complete development? Why?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9487846

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