Question: hi! Please help with this case study and please make sure it's 100% correct ! Thanks !! Read Memo #7 on page 489. To provide
hi! Please help with this case study and please make sure it's 100% correct ! Thanks !!


Read Memo #7 on page 489. To provide the answers for the Memo, you will utilize some basic math skills and the Game theory. Assume yourself as the Pricing Manager which memo 7 is addressed to. Submit your report by Monday 11 PM. Submit either docx or PDF format. writing clearly typed. If you did any calculation and created any tables to draw to answer to the Memo, all should be included in your writing. Submit in one file. Your grade will be based on following criterias: -Able to utilize all tools and method needed to analyze the situation: 10 points Able to show all correct calculations: 10 points Able to construct/show game table: 10 points Able to connect/recognize each step to draw the final conclusion and suggestion; 10 points Able to draw the correct conclusion using the tools given: 10 Points Our only competitor in the Central State region currently provides bundled services at $79.95. We are currently charging a 10 percent premium over its price, but there are rumors that it is contemplating a 10 percent price increase to bring its price in line with ours. We don't know its cost structure, so we don't know whether its price increase is driven by rising costs or a strategic move to gain margin. Historically, when we both charge the same price, our market share is about 65 percent. When we charge a 10 percent premium over its price, our market share declines to about 60 percent. It appears that in those instances when it charges a 10 percent higher price than us, our market share is about 70 percent. Please provide a recommendation regarding whether we should maintain our current price or reduce our price to $79.95. Please factor into your recommendation that we pay programming fees that amount to $49.50 per subscriber. In addition, maintenance, service, and billing costs are about $6.50 per subscriber. At present, there are 110,000 households in the relevant market
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