Question details

Principles of Econ
$ 10.00

The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your sales manager reports that the introduction of competing products has reduced the expected profits of your new product to $3 million. Should you cancel the development of the product? If you decide to continue with the development, what is the most that you should pay to complete the development of the product? Explain.

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