Suppose Mattel, the producer of Barble dolls and accessorles (sold separately), has two types of consumers who purchase Its dolls: low-valueconsumers and high-value consumers. Each of the low-value consumers tends to purchase one doll and one accessory, with a total willingness to payof $44. Each of the high-value consumers buys one doll and two accessorles and Is willing to pay $82 In total.Mattel Is currently considering two pricing strategles:• Strategy 1: Sell each doll for $22 and each accessory for $22• Strategy 2: Sell each doll for $6 and each accessory for $38In the following table, Indicate the revenue for a low-value and a high-value customer under strategy I and strategy 2. Then, assuming each strategyis applied to one low-value and one high-value customer, indicate the total revenue for each strategy.Revenue from Low-ValueRevenue from High-ValueTotal Revenue fromCustomersCustomersStrategy$44 Value, 1 AccessoryS82 Value, 2 Accessories(s)($)(s)Strategy 1$22 doll + $22accessoryStrategy 2$6 doll + S38 accessoryThe strategy that generates the most revenue is strategy00

Gross revenue, is how much cash your business creates from selling your items or administrations…

cegy 1: Sell each doll for $22 and each accessory for $22 egy 2: Sell each doll for $6 and each accessory for $38 owing table, indicate the revenue for a low-value and a high-value customer under strategy I and strategy 2. Then, assuming each strategy to one low-value and one high-value customer, indicate the total revenue for each strategy. Revenue from Low-Value Revenue from High-Value Total Revenue from Customers Customers Strategy $44 Value, 1 Accessory S82 Value, 2 Accessories (s) ($) ($) y 1 loll + $22 sory

cegy 1: Sell each doll for $22 and each accessory for $22 egy 2: Sell each doll for $6 and each accessory for $38 owing table, indicate the revenue for a low-value and a high-value customer under strategy I and strategy 2. Then, assuming each strategy to one low-value and one high-value customer, indicate the total revenue for each strategy. Revenue from Low-Value Revenue from High-Value Total Revenue from Customers Customers Strategy $44 Value, 1 Accessory S82 Value, 2 Accessories (s) ($) ($) y 1 loll + $22 sory

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 14P

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