Question: Consider a audio streaming service that provides offers two options for customers: a modern music plan and a classical music plan. Type A consumers value
Consider a audio streaming service that provides offers two options for customers: a modern music plan and a classical music plan. Type A consumers value the modern plan at $25 and the classical plan at $55. Type B consumers value the modern plan at $60 and the classical plan at $30. If the streaming service wants to charge single prices to maximize its revenue, what would those prices be? (Hint: You may want to draw a table of valuations.)
a. $60 for modern music and $55 for classical music
b. $25 for modern music and $30 for classical music
c. $25 for modern music and $55 for classical music
d. $60 for modern music and $30 for classical music
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