III. Happy Valley Software (30 points) Happy Valley Software has developed a new meteorology software package...

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III. Happy Valley Software (30 points) Happy Valley Software has developed a new meteorology software package that will likely revolutionize the weather forecasting industry. They are looking to market the software to the following three segments: Governmental applications (500 customers) Scientific focused companies (1,500 customer) Media outlets (TV, radio) (5,000 customers) Further, assume for simplicity that: Maximum willingness to pay (price) for each segment and package marginal costs to produce the software package are presented in table below. There are no additional costs of market development. There are no fixed costs incurred for setting up each package class. Assume that segments that receive zero surplus, still will buy the package. If customers get the same surplus from two versions, they will buy the Premium version. They have developed the following two versions of the software: Premium Marginal Cost = $10,000 Your Price: $ Maximum willingness to Weather-Guesser Marginal Cost = $1,250 Your Price: $ Maximum willingness to Segments Government Scientific Media pay $100,000 $65,000 $20,000 pay $30,000 $10,000 $7,500 c) (6 points) Without making any calculations, what suggestions do you have to allow the Happy Valley Software company to increase its profits over what you presented in part (b)? What do you have to be concerned about when determining the correct pricing for the two options? III. Happy Valley Software (30 points) Happy Valley Software has developed a new meteorology software package that will likely revolutionize the weather forecasting industry. They are looking to market the software to the following three segments: Governmental applications (500 customers) Scientific focused companies (1,500 customer) Media outlets (TV, radio) (5,000 customers) Further, assume for simplicity that: Maximum willingness to pay (price) for each segment and package marginal costs to produce the software package are presented in table below. There are no additional costs of market development. There are no fixed costs incurred for setting up each package class. Assume that segments that receive zero surplus, still will buy the package. If customers get the same surplus from two versions, they will buy the Premium version. They have developed the following two versions of the software: Premium Marginal Cost = $10,000 Your Price: $ Maximum willingness to Weather-Guesser Marginal Cost = $1,250 Your Price: $ Maximum willingness to Segments Government Scientific Media pay $100,000 $65,000 $20,000 pay $30,000 $10,000 $7,500 c) (6 points) Without making any calculations, what suggestions do you have to allow the Happy Valley Software company to increase its profits over what you presented in part (b)? What do you have to be concerned about when determining the correct pricing for the two options?