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After spending two years and $10,000,000 on developing a new product, Beat It Company has found out that a competitor-Thriller Inc.-has also developed a similar product that directly competes with them. Since Thriller got its product to the market first, it has set the price the market is willing to pay. The price set is lower than Beat It's cost to build each unit, thus it can only sell its product at a loss. The company still has to spend $1,000,000 to advertise and market the product
Problem 1: Should Beat It spend the money to advertise and market the product?
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