Suppose that in the situation shown in Figure 14.7, TruImage's profit is $1.5 million if the firm

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Suppose that in the situation shown in Figure 14.7, TruImage's profit is $1.5 million if the firm accepts Dell's contract offer of $20 per copy. Now will Dell offer TruImage a contract for $20 per copy or a contract for $30 per copy? Briefly explain.
Figure 14.7
Profit Accept Dell $10 million Trulmage $5 million Trulmage Decision: Accept Offer or Don't Accept Offer Profit $30 Don'
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Microeconomics

ISBN: 9780135952955

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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