Question: Digital cameres are characterized by two key dimensions: the optical zoom ratio and the number of megapixels of resolution used to record the image, Thus,

Digital cameres are characterized by two key dimensions: the optical zoom ratio and the number of megapixels of resolution used to record the image, Thus, we can think of all potential buyers as being distributed in this space. We discretize this space so that we consider the following combinations of zoom ratio and megapixels: The table estimates the number of weekly sales we would get from each of 20 combinations of the zoom ratio and megapixels. In addition, we can estimate the number of sales we would get of one manufactured camera model from people wanting to buy a different model, as shown below. In essence, we will try to locate the cameras to be manufactured in the spoce of camera characteristics as described by the zoom ratio and the number of megapixels. This table applies to people who want to buy a camera with 3x optical zoom and 7 megapixels. If such a camera is made. then 100 percent of the market will buv that camera. If it is not made. the 10% of the market will downerade
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