Question: Answer Exercise 14 please Versioning example N = number of experts, N = number of students Buyers buy only 1 version Version Student Expert Costs
Answer Exercise 14 please
Versioning example
N = number of experts, N = number of students
Buyers buy only 1 version
| Version | Student | Expert | Costs |
| Basic | $50 | $75 | $10 |
| Full | $100 | $400 | $20 |
Single version
| Basic only | Full only | ||
| PB | Profit | PF | Profit |
| 50 | (50- 10)(N + N) | 100 | (100- 20)(N + N) |
| 75 | (75- 10)N | 400 | (400- 20)N |
Exercise 14: Menu of versions
Seller offer : A menu of versions
Basic: pB = __________
Full: pF = _________
Buyer choice
| Buyer type | Consumer surplus | Buyer Choice | |
| Basic | Full | ||
| Student | |||
| Expert |
Profit: = N(__________) + N(________)
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