Question: Using this linear demand curve from this information. Product: Microsoft Xbox One X 1TB Console Suggested selling price: $389.90 Sales in 2018: 29.4 million units

Using this linear demand curve from this information.

Product: Microsoft Xbox One X 1TB Console

Suggested selling price: $389.90

Sales in 2018: 29.4 million units

Variable cost per unit: $116

Fixed cost per unit: $50

Price elasticity for high-end gaming console: 2.6

Question 5: Xbox One X and Controller

The R&D team of Xbox One X develops a new Bluetooth controller.

The R&D team provides the following information to the marketing manager:

Captive product: Bluetooth controller

Average lifetime of Xbox One X console: 6 years

Average lifetime of controller: 2 years

Selling price of controller: $59.99

Profit from selling one controller: $39.99

Question 5.1: Please determine the profit maximization price for Xbox One X console with a consideration of the sales of Bluetooth controller (which is a captive product). (20 pts)

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LO2.6 Explain how the market system deals with risk.

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