14. Versioning a) (5 marks). What is versioning. If a firm is currently offering a high quality version then explain the trade-off involved in introducing a low quality version. Consider both the case in which the firm sells the high quality product to (i) both buyers and {ii) to high demand buyers only. b) {5 marks). Determine whether versioning is profitable in the following example. Refer to your answer in part a} to explain the profit consequences of versioning in this example. Low and High Quality Versions N = number of Students, N = Number of Experts Version _ Student ' Expert ' Costs Basic '_ 100 j 140 '_ so Full 120 200 72 c) (5 marks). Explain why versioning may be more profitable ifa less efficient low quality version is offered. Illustrate your answer by comparing the profitability of versioning in the example below to the profitability of versioning in part b). Low and High Quality Versions: Inefficient Low Quality Version N = number of Students, N = Number of Experts Version _ Student . Expert _ Costs Basic 30 100 40 Full 120 ' 200 ' 72 d) {5 marks). If a firm is currently offering a version with no restrictions then explain why offering an equally costly version with restrictions can increase profits. Illustrate your answer by determining the profitability of versioning in the example below. Restricted and Unrestricted versions N = number of buyers of each type, Buyers buy only 1 version Version _Tourist _ Worker - Costs Restrictions . 200 350 10 No Restrictions 250 600 10