.computer hardware firm sells both laptop computers and printers. Through the magic of focus groups, their pricing team determines that they have an equal umber of three types of customers, and that these customers' reservation prices are as illustrated in the figure below. Laptop $850 $950 S600 Bundle $950 $1,000 S750 Printer $100 Customer A Customer B $50 $150 Customer C ssume for simplicity the marginal cost of production for laptops and printers is zero. the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profit? Assuming for implicity that the firm has only one customers of each type, how much does it earn in total? o maximize profit using individual prices, the firm should charge a price for laptops of p=650 nd a price for printers of p= 100 Enter your responses as whole numbers.)
.computer hardware firm sells both laptop computers and printers. Through the magic of focus groups, their pricing team determines that they have an equal umber of three types of customers, and that these customers' reservation prices are as illustrated in the figure below. Laptop $850 $950 S600 Bundle $950 $1,000 S750 Printer $100 Customer A Customer B $50 $150 Customer C ssume for simplicity the marginal cost of production for laptops and printers is zero. the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profit? Assuming for implicity that the firm has only one customers of each type, how much does it earn in total? o maximize profit using individual prices, the firm should charge a price for laptops of p=650 nd a price for printers of p= 100 Enter your responses as whole numbers.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A computer hardware firm sells both laptop computers and printers. Through the magic of focus groups, their pricing team determines that they have an equal
number of three types of customers, and that these customers' reservation prices are as illustrated in the figure below.
Printer
$100
Bundle
$950
$1,000
$750
Laptop
$850
Customer A
Customer B
$950
$600
$50
$150
Customer C
Assume for simplicity the marginal cost of production for laptops and printers is zero.
If the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profit? Assuming for
simplicity that the firm has only one customers of each type, how much does it earn in total?
To maximize profit using individual prices, the firm should charge a price for laptops of
p= 650
and a price for printers of
p= 100
(Enter your responses as whole numbers.)
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