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Cyberdyne Systems creates a Professional version of its machine learning software. By disabling some of the features in the Professional version it can create a Home version. Both versions have zero marginal cost. Cyberdyne Systems faces two customer segments which it cannot distinguish between and each is interested in buying at most one version. The RPs of each segments for each version are displayed below. Business Home Buyers |Professional Version | Home Version Segment Size $80 $20 $20 $10 30 70 Each customer will choose the software that gives her the highest surplus. 3. Now suppose that Cyberdyne has a competitor who also sells a product, which is an alter- native to Cyberdyne's. The Business customers have an RP of $10 for this product, while Home Buyers have an RP of $15. The competitor firm is selling its product for a price of $10 and will not change it regardless of Cyberdyne's actions. What prices should Cyberdyne set to maximize revenue? You may assume that customers will choose Cyberdyne's products if the surplus they get is exactly the same as the one they get by buying the competitor's product.

Cyberdyne Systems creates a Professional version of its machine learning software. By disabling some of the features in the Professional version it can create a Home version. Both versions have zero marginal cost. Cyberdyne Systems faces two customer segments which it cannot distinguish between and each is interested in buying at most one version. The RPs of each segments for each version are displayed below. Business Home Buyers |Professional Version | Home Version Segment Size $80 $20 $20 $10 30 70 Each customer will choose the software that gives her the highest surplus. 3. Now suppose that Cyberdyne has a competitor who also sells a product, which is an alter- native to Cyberdyne's. The Business customers have an RP of $10 for this product, while Home Buyers have an RP of $15. The competitor firm is selling its product for a price of $10 and will not change it regardless of Cyberdyne's actions. What prices should Cyberdyne set to maximize revenue? You may assume that customers will choose Cyberdyne's products if the surplus they get is exactly the same as the one they get by buying the competitor's product.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Cyberdyne Systems creates a Professional version of its machine learning software. By disabling some of the features in the Professional version it can create a Home version. Both versions have zero marginal cost. Cyberdyne Systems faces two customer segments which it cannot distinguish between and each is interested in buying at most one version. The RPs of each segments for each version are displayed below. Business Home Buyers Professional Version | Home Version Segment Size $20 $10 30 70 $80 $20 Each customer will choose the software that gives her the highest surplus. 3. Now suppose that Cyberdyne has a competitor who also sells a product, which is an alter- native to Cyberdyne's. The Business customers have an RP of $10 for this product, while Home Buyers have an RP of $15. The competitor firm is selling its product for a price of $10 and will not change it regardless of Cyberdyne's actions. What prices should Cyberdyne set to maximize revenue? You may assume that customers will choose Cyberdyne's products if the surplus they get is exactly the same as the one they get by buying the competitor's product.
Transcribed Image Text:Cyberdyne Systems creates a Professional version of its machine learning software. By disabling some of the features in the Professional version it can create a Home version. Both versions have zero marginal cost. Cyberdyne Systems faces two customer segments which it cannot distinguish between and each is interested in buying at most one version. The RPs of each segments for each version are displayed below. Business Home Buyers Professional Version | Home Version Segment Size $20 $10 30 70 $80 $20 Each customer will choose the software that gives her the highest surplus. 3. Now suppose that Cyberdyne has a competitor who also sells a product, which is an alter- native to Cyberdyne's. The Business customers have an RP of $10 for this product, while Home Buyers have an RP of $15. The competitor firm is selling its product for a price of $10 and will not change it regardless of Cyberdyne's actions. What prices should Cyberdyne set to maximize revenue? You may assume that customers will choose Cyberdyne's products if the surplus they get is exactly the same as the one they get by buying the competitor's product.
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