Question: please help with last question c Question 3 - Bundle Pricing (6 points) The Wall Street Journal (WSJ) wants to price home subscriptions and web

 please help with last question c Question 3 - Bundle Pricing

please help with last question c

Question 3 - Bundle Pricing (6 points) The Wall Street Journal (WSJ) wants to price home subscriptions and web access to three segments of customers. Assume there are three market segments of the same size and their willingness to pay (per month) for each product are provided as follows: Segment New Graduates Working Professional Seasoned Managers Size 100 100 100 WTP for Home Subscription WTP for Web Access 5 20 30 15 35 5 a. If WSJ offers home subscriptions and web access separately in the market, what are the optimal prices for home subscription and web access, respectively? What is the maximum profit? (2 points) b. If WSJ bundles home subscriptions and web access together, and offer only the bundle into the market, what price should WSJ charge in order to maximize its profit? What is the maximum profit? (2 points) C. If WSJ were to offer three options: home subscriptions, web access, and the two of them bundled together, what are the optimal prices for each option? What is the maximum profit? State your answers very clearly. (2 points)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!