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MegaSports,Inc

question 24

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MegaSports,Inc.produces two high-priced metal baseball bats,the Slugger and the Launcher,that are made from special aluminum and steel alloys.The cost to produce a Slugger bat is $100,and the cost to produce a Launcher bat is $120.We can not assume that MegaSports will sell all the bats it can produce.As the selling price of each bat model - Slugger and Launcher - increases,the quantity demanded for each model goes down.
Assume that the demand,S,for Slugger bats is given by
S = 640 - 4PS
and the demand,L,for Launcher bats is given by L = 450 - 3PL where PS is the price of a Slugger bat and PL is the price of a Launcher bat.The profit contributions are
PS S - 100S for Slugger bats and PL L - 120L for Launcher bats.Develop the total profit contribution function for this problem.


Definitions:

Dissonance Theory

A psychological theory suggesting that individuals experience discomfort (dissonance) arising from inconsistent beliefs, attitudes, or behaviors and are motivated to reduce this discomfort by changing them to achieve consistency.

Enjoyable

Capable of providing pleasure or satisfaction, often used to describe experiences or activities.

Foot-in-the-door

A persuasion technique that involves getting a person to agree to a small request to increase the likelihood of agreeing to a larger request later.

Persuasion

The process of influencing someone's beliefs, attitudes, intentions, motivations, or behaviors.

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