1. Critical Thinking Companies sometimes teach consumers a “bad lesson” with the overuse of sales promotions. As a result, consumers expect the product always to be “on deal” or have a rebate available. What are some examples of products for which this has occurred? How do you think companies can prevent this?
2. For a given company, how does leverage impact equity value? How does leverage impact enterprise value?
3. Describe/Explain the duopolist dilemma. Be able to explain the various pricing outcomes.