Question 42: Suppose that JVC is trying to decide how to price a new stereo system composed of a recerver CD player, and speakers. The company's economists have estimated that three different group will purchase these products: students, restaurant owners, and club owners. The economists analysis suggests that the total market for its brand of stereos consists of 100 students, 150 restaurant owners, and 25 club owners. In addition, it is estimated that the maximum amount each group will pay for each stereo component is as follows: Group Receiver CD Player Speakers Students $100 $200 $125 Restaurant owners $200 $100 $250 Club owners $250 $75 $300 Vhat is JVC's maximum revenue if it uses a commodity-bundle strategy such that the receiv CD player, and speakers are sold as one item? nswer: Maximum revenue -
Question 42: Suppose that JVC is trying to decide how to price a new stereo system composed of a recerver CD player, and speakers. The company's economists have estimated that three different group will purchase these products: students, restaurant owners, and club owners. The economists analysis suggests that the total market for its brand of stereos consists of 100 students, 150 restaurant owners, and 25 club owners. In addition, it is estimated that the maximum amount each group will pay for each stereo component is as follows: Group Receiver CD Player Speakers Students $100 $200 $125 Restaurant owners $200 $100 $250 Club owners $250 $75 $300 Vhat is JVC's maximum revenue if it uses a commodity-bundle strategy such that the receiv CD player, and speakers are sold as one item? nswer: Maximum revenue -
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Question 42:
Suppose that JVC is trying to decide how to price a new stereo system composed of a receive
CD player, and speakers. The company's economists have estimated that three different groups
will purchase these products: students, restaurant owners and club owners. The cconomists
analysis suggests that the total market for its brand of stereos consists of 100 students, 150
restaurant owners, and 25 club owners. In addition, it is estimated that the maximum amount
each group will pay for each stereo component is as follows:
Group
CD Player Speakers
Receiver
Students
$100
$200
$125
Restaurant
$200
$100
$250
owners
Club owners
$250
$75
$300
What is JVC's maximum revenue if it uses a commodity-bundle strategy such that the receiver,
CD player, and speakers are sold as one item?
Answer: Maximum revenue =
Instructions: Enter your response rounded to the nearest whole number. Write down the
intermediate steps on the exam sheet for partial credit.
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