A firm that sells word processing and spreadsheet programs, with zero marginal and average cost, has four potential customers. The following table shows each customer's willingness to pay foreach service and for a bundleConsumer 1Consumer 2Consumer 3.Consumer 4Word Processor$116$27$117$12Spreadsheet$27$116$12$117Bundle$143$143$129$129Show that the firm can eam more by using mixed bundling than by using pure bundling or charging separate prices for each service.Calculate the profit-maximizing separate service prices and the profitIf the firm charges separate prices, then the profit-maximizing prices are $ for the word processor and $ for the spreadsheet, and the corresponding profit for the firm is $ (Enter numericresponses using integers)

Maximizing profits involves determining the pricing and production levels that result in the…

Afirm that sells word processing and spreadsheet programs, with zero marginal and average cost, has four potential customers. The following table shows each customer's willingness to pay for each service and for a bundle Consumer 1 Consumer 2 Consumer 3 Consumer 4 Word Processor $116 $27 $117 $12 Spreadsheet $27 $116 $12 $117 Show that the firm can eam more by using mixed bunding than by using pure bunding or charging separate prices for each service Calculate the profit-maximizing separate service prices and the profit Bundle $143 $143 $129 $129 If the firm charges separate prices, then the profe-maximizing prices are $ for the word processor and $ for the spreadsheet, and the corresponding profit for the firm is $ (Enter numeric responses using integers)

Afirm that sells word processing and spreadsheet programs, with zero marginal and average cost, has four potential customers. The following table shows each customer's willingness to pay for each service and for a bundle Consumer 1 Consumer 2 Consumer 3 Consumer 4 Word Processor $116 $27 $117 $12 Spreadsheet $27 $116 $12 $117 Show that the firm can eam more by using mixed bunding than by using pure bunding or charging separate prices for each service Calculate the profit-maximizing separate service prices and the profit Bundle $143 $143 $129 $129 If the firm charges separate prices, then the profe-maximizing prices are $ for the word processor and $ for the spreadsheet, and the corresponding profit for the firm is $ (Enter numeric responses using integers)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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