Question: Please help with the high and low quality question below. 3. You have the option to produce different versions of a product or service: high

Please help with the high and low quality question below.

Please help with the high and low quality question below. 3. You

3. You have the option to produce different versions of a product or service: high quality, or low quality. The marginal cost to produce the low quality version is $3 and the marginal cost to produce the high quality version is $15. There are two types of consumers Type A and Type C with 100 consumers of each type. Each consumer will buy at most one version of the product. These consumers have the following willingness to pay: Low Quality High Quality Customer Type A $14 $28 Customer Type C $18 $52 (a) 3 points Suppose you were to offer only the low quality version. Find the optimal price and prot. Show / Explain why these are the optimal prices/ prots. (b) 3 points Suppose you were to only offer the high quality version. Find the optimal price and prot. Show / Explain why these are the optimal prices/ prots. (c) 7 points Suppose you offer high and low quality versions. Find the optimal prices and prot

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