Suppose there are 5 types of consumers: Type A. Type B. Type C. Type D, and Type E. There are 2,000 of each type. Two software products are sold by a monopolist: spreadsheets and word processing. Assume the marginal cost of producing each program is $25. Consumer Type A B с D E Number 2,000 2,000 2,000 2,000 2,000 Spreadsheet 200 75 50 25 0 b. What is profit under this pricing policy? Willingness to Pay Word Processor Instructions: Round your answers to the nearest whole number. a. What will be the profit-maximizing bundle price? 0 25 50 75 200 Both 200 100 100 100 200 c. How will profit from this pricing policy compare to profit under independent pricing of the two goods? When pricing independently, the profit-maximizing price for spreadsheets is $ processing is $ and the profit-maximizing price for word

Suppose there are 5 types of consumers: Type A. Type B. Type C. Type D, and Type E. There are 2,000 of each type. Two software products are sold by a monopolist: spreadsheets and word processing. Assume the marginal cost of producing each program is $25. Consumer Type A B с D E Number 2,000 2,000 2,000 2,000 2,000 Spreadsheet 200 75 50 25 0 b. What is profit under this pricing policy? Willingness to Pay Word Processor Instructions: Round your answers to the nearest whole number. a. What will be the profit-maximizing bundle price? 0 25 50 75 200 Both 200 100 100 100 200 c. How will profit from this pricing policy compare to profit under independent pricing of the two goods? When pricing independently, the profit-maximizing price for spreadsheets is $ processing is $ and the profit-maximizing price for word

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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