The following table gives different consumer types' willingness to pay for the products you are selling,...
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The following table gives different consumer types' willingness to pay for the products you are selling, along with the numbers of consumers of each type. Your marginal cost is $3 per unit for each product. Number of Consumers 150 250 100 200 200 100 Type Type 1 Type 2 Type 3 Type 4 Type 5 Type 6 Product A 9 6 6 7 1 3 Product B 8 7 7 6 1 3 Product C 2 2 6 6 8 9 Product D 3 1 6 7 8 8 a. If you choose not to use tying, what price will you charge for each product and what is the expected revenue for each product? b. Suppose you decide to use pure tying (that is, you only offer all products in a single package). How much will you charge for this package? Will you be able to make more money than without tying? c. Suggest a mixed tying pricing strategy for this case. Clearly show which type will buy what. How much will you be able to make? The following table gives different consumer types' willingness to pay for the products you are selling, along with the numbers of consumers of each type. Your marginal cost is $3 per unit for each product. Number of Consumers 150 250 100 200 200 100 Type Type 1 Type 2 Type 3 Type 4 Type 5 Type 6 Product A 9 6 6 7 1 3 Product B 8 7 7 6 1 3 Product C 2 2 6 6 8 9 Product D 3 1 6 7 8 8 a. If you choose not to use tying, what price will you charge for each product and what is the expected revenue for each product? b. Suppose you decide to use pure tying (that is, you only offer all products in a single package). How much will you charge for this package? Will you be able to make more money than without tying? c. Suggest a mixed tying pricing strategy for this case. Clearly show which type will buy what. How much will you be able to make?
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Number Consumers 150 250 100 200 200 Type Type 1 100 5 6 A 9 2 6 ... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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