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The second issue is a decision on whether or not the distributorship is feasible or, in other words, a go/no-go decision by Brownlow regarding his application. This issue is largely implicit in the case.
Decision-Making Process
The framework used in this note is organized around the estimates of industry demand, market share, costs, and performance. All data references in the following quantitative analyses come from Exhibit 1 in this note.
1. Industry Demand
It is possible to estimate industry demand in two manners. The first involves results of Studies A and B and could be termed a “per capita” approach...
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