Suppose your marketing department does a survey of potential users and finds that these users place the following values (willingness to pay) on two versions of your software:

Software Version	Home Users	Commercial Users
Full-featured version	$150	$600
Disabled version	$50	$100

There are 1,000 home users and 400 commercial users, and you cannot distinguish between them (no direct price discrimination). In order to answer the questions below, assume your goal is to maximize revenue (ignore costs).

(a) Suppose you can only sell one version. Which would it be and at what price?

(b) Now suppose you can sell both. How would you price them?

(c) What is your best option (market just one or both)?

Answer rating: 100% (QA)

a of the possibility exists to of the software we nee... View the full answer