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Market Price Assignment | Homework For You

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Our (Time Warner’s) only competitor is District X currently provides bundled services at $84.95. We are currently charging a 10% premium over their price, but there are unsubstantiated rumors that they are contemplating a 10% price increase. We don’t know their cost structure, so we don’t know whether their potential price increase is driven by cost increases or is merely a strategic move on their …

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