1) Choose two pricing strategies that you would implement as the firm manager.

STRATEGIES CAN IMPLEMENT AS THE FIRM MANAGER

• Block pricing provides a means by which the firm can get the consumer to pay the full value of multiple units.
• Two-part pricing allows a firm to earn higher profits than it would earn by simply charging a price for each unit sold. By charging a fixed fee, the firm is able to extract consumer surplus,
• Commodity bundling refers to the practice of bundling two or more different products together and selling them at a single "bundle price."
• A strategy of cross-subsidies uses profits made with one product to subsidize sales of another product.
• Reduce the tension of Bertrand competition is to adopt strategies that induce brand loyalty. Brand-loyal customers will continue to buy a firm's product even if another firm offers a (slightly) better price. By inducing brand loyalty, a firm reduces the number of consumers who will "switch" to another firm if it undercuts its price.
• randomized pricing. With a randomized-pricing strategy, a firm varies its price from hour to hour or day to day.

2) Explain how exactly you would implement these two pricing strategies in the real-world.