manager of a firm that produces products X and Y at zero cost. Knowing different types of consumers value your two products differently, but unable to identify these consumers individually at the time of the sale while taking in consideration four types of consumers as 100 of each type considering consumers 1 - 4 with product x, y, and bundle. Product X Product Y Bundle Consumer 1 60 15 75 C 2 55 45 100 C 3 45 55 100 C 4 15 60 75 A. If the firm priced each product separately, what would be the firm’s maximum profit? Why?
A manager of a firm that produces products X and Y at zero cost. Knowing different types of consumers value your two products differently, but unable to identify these consumers individually at the time of the sale while taking in consideration four types of consumers as 100 of each type considering consumers 1 - 4 with product x, y, and bundle.
Product X Product Y Bundle
Consumer 1 60 15 75
C 2 55 45 100
C 3 45 55 100
C 4 15 60 75
A. If the firm
B. If the firm charged $75 for the bundle, what would be the firm’s maximum profit? And why?
C. What pricing strategy would you apply as a manger? Charge each product separately or bundle? If either one, why?
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