The financial writer Andrew Tobias has described an incident when he was a student at Harvard Business School: Each student in the class was given large amounts of information about a particular firm and asked to determine a pricing strategy for the firm. Most of the students spent hours preparing their answers and came to class carrying many sheets of paper with their calculations. When his professor called on him in class for an answer, Tobias stated, "The case
said the XYZ Company was in a very competitive industry . . . and the case said that the company had all the business it could handle."
Source: Andrew Tobias, The Only Investment Guide You'll Ever
Need,
San Diego: Harcourt, 2005, pp. 6-8.
Part 2
Given this information, what price do you think Tobias argued the company should charge? (Tobias says the class greeted his answer with "thunderous applause.")