Consumer Valuations for Two Versions of the Honda Pilot Consumer Type Honda Pilot 4WD LX Honda Pilot 4WD Touring Highly price-sensitive $32,000 $37,000 Less price-sensitive $33,500 $44,000 Honda plans on pricing the 4WD LX at $30,000 and the Touring model at $40,000. Is this pricing structure incentive compatible? How much would Honda get from selling to two customers-one of each type? O Yes; $70,000. O No; $70,00O. O Yes; $76,000. O There's not enough information to be able to determine the answer. O No; $60,000. Suppose that the Touring model costs just $1000 more to produce than the 4WD LX. How much can Honda raise the price on the Touring model (keeping the price on the 4WD LX unchanged) without reducing profit? O $599.99. O $999.99. O $1499.99. O $499.99. O $0.

Consumer Valuations for Two Versions of the Honda Pilot Consumer Type Honda Pilot 4WD LX Honda Pilot 4WD Touring Highly price-sensitive $32,000 $37,000 Less price-sensitive $33,500 $44,000 Honda plans on pricing the 4WD LX at $30,000 and the Touring model at $40,000. Is this pricing structure incentive compatible? How much would Honda get from selling to two customers-one of each type? O Yes; $70,000. O No; $70,00O. O Yes; $76,000. O There's not enough information to be able to determine the answer. O No; $60,000. Suppose that the Touring model costs just $1000 more to produce than the 4WD LX. How much can Honda raise the price on the Touring model (keeping the price on the 4WD LX unchanged) without reducing profit? O $599.99. O $999.99. O $1499.99. O $499.99. O $0.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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