A computer hardware firm sells both laptop computers and printers. Their pricing team determines that there are 3 types of customers with the following willingness to pay: Laptop PrinterCustomer Type A $800 $100 $900Customer Type B $1,000 $50 $1050Customer Type C $600 $150 $750 If the firm were to change only individual prices, what prices should it charge for its laptops and printers? Assume for simplicity that the firm has only 1 customer of each type and that incremental costs for laptops and printers = $0. How much profit does the firm earn? How much consumer surplus will there be?

As incremental cost is zero for both laptops and printers production, so at any price index the firm…

Answered: A computer hardware firm sells both…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A computer hardware firm sells both laptop computers and printers. Their pricing team determines that there are 3 types of customers with the following willingness to pay:

Laptop Printer

Customer Type A $800 $100 $900

Customer Type B $1,000 $50 $1050

Customer Type C $600 $150 $750

If the firm were to change only individual prices, what prices should it charge for its laptops and printers? Assume for simplicity that the firm has only 1 customer of each type and that incremental costs for laptops and printers = $0. How much profit does the firm earn? How much consumer surplus will there be?

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