Hey everyone,

I believe the conclusion answer given is a bit missleading - to me it looks like we are comparing the 33% of OUR market share that we can afford to loose with the 2.85% of the TOTAL market share that the new competitor can take from us. Shouldnt we take the 33% of the 13% total share we have = 4.29% which is then the percantage of the total share we can afford to loose before having to reduce the prices woth 20%? And then compare it with the 2.85%?

The conclusion is the same - we do not reduce the price, but I think it is misleading to state 33% and 2.85%. Did I miss something?