Question: a] 3rd Individual Assignment: KRANHERT WEI MANAGEMENT W Versioning Test Problem Given the following information, does ACME maximize its profit by offering just a slow

a] 3rd Individual Assignment: KRANHERT WEI
a] 3rd Individual Assignment: KRANHERT WEI MANAGEMENT W Versioning Test Problem Given the following information, does ACME maximize its profit by offering just a slow speed carrot peeler, just a high speed, or both? What price(s) would be charged? What profit would be made? Number of Benefit derived from Product consumers Slow speed High Speed A 30 $70 $80 B IO $50 $90 - ACME has a monopoly in the carrot peeler industry- - Marginal costs of production are zero for both the high and slow speed carrot peeler. - Consumers in each segment all behave exactly same. They purchase the high speed peeler, the slow speed peeler or neither. Answer the above questions once more in the situation where marginal cost is still zero for the slow speed carrot peeler but $30 for the high speed carrot peeler. [Note Profit = (Price Marginal cost) x Number of units sold]

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