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Use the Harvard Business Case, "The Ready-to-Eat Breakfast Cereal Industry in 1994" as the basis for answering the following questions:
1. Prior to the entry of private label producers, how would you classify demand (elastic, inelastic, unit elastic) for cereals produced by the Big Three? Support your answer by using details from the case and referencing the factors that influence the elasticity of demand
2. How would the entry of new private label producers impact the elasticity of demand for the Big Three's products?
3. Identify both a variable cost and a fixed cost of cereal production.
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