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The innovator at this stage is a monopo­list and therefore enjoys all of the benefits of monopoly power including the high profit margins required to repay the high development costs and expensive produc­tion process Price elasticity of demand at this stage is low highincome consumers buy it regardless of cost

1 Any reduction in price or value especially when below a stated or normal price 2 To buy or sell commercial paper at a price below face value to account for interest to accrue before maturity Discounted cash flow DCF Any method of investment project evaluation and selection that adjusts cash flows over time for the time value of money A valuation methodology that discounts expected future

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