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This seemingly simple case tests the candidates understanding of cost-volume-profit analyses, changes in market structures and evolving consumer segments.
Alice provides a premature answer because she does not take sufficient to understand how the type, and behaviour, of the counterfeiter will change with the new technology.
Kevin guides Alice to the correct answer. Yet, Alice struggles to explain the reasoning behind the change in her decision in a clear and concise manner.
Alice selects the correct bill denomination for earliest replacement, but for the wrong reason. She is focusing on the circulation value of the currency, which misleads her.