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The following table contains different consumers' values for three software titles: PowerPoint, Excel, and Word. Suppose there are 100 consumers of each type. It costs Microsoft $0 to produce each piece of software. Consumer Types Administrative Assistants PowerPoint Excel Word Marketing/Sales Accountants 75 200 100 200 100 125 25 250 25 When customers are indifferent, they choose the option where they buy more software A la carte Pricing If Microsoft were to sell each of the software individually, what price should it set for each and what would its profits on each be? Total profit on all software: $ PowerPoint Price per each 200 Profit on just that software 20000 Excel Bundled Pricing If Microsoft were to only sell the three products as a bundle, what price should they set for bundle? S what would be the profits?$ Mixed Pricing Suppose that Microsoft offered a bundle of all three for $375, but it also offers a price of $200 for each software separately. What is the new profit level for this pricing scheme? $ Word

The following table contains different consumers' values for three software titles: PowerPoint, Excel, and Word. Suppose there are 100 consumers of each type. It costs Microsoft $0 to produce each piece of software. Consumer Types Administrative Assistants PowerPoint Excel Word Marketing/Sales Accountants 75 200 100 200 100 125 25 250 25 When customers are indifferent, they choose the option where they buy more software A la carte Pricing If Microsoft were to sell each of the software individually, what price should it set for each and what would its profits on each be? Total profit on all software: $ PowerPoint Price per each 200 Profit on just that software 20000 Excel Bundled Pricing If Microsoft were to only sell the three products as a bundle, what price should they set for bundle? S what would be the profits?$ Mixed Pricing Suppose that Microsoft offered a bundle of all three for $375, but it also offers a price of $200 for each software separately. What is the new profit level for this pricing scheme? $ Word

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following table contains different consumers' values for three software titles: PowerPoint, Excel, and Word. Suppose there are 100 consumers of each type. It costs Microsoft $0 to produce each piece of software. Consumer Types Administrative Assistants PowerPoint Excel Word Marketing/Sales Accountants 75 200 100 200 100 125 25 250 25 When customers are indifferent, they choose the option where they buy more software A la carte Pricing If Microsoft were to sell each of the software individually, what price should it set for each and what would its profits on each be? Total profit on all software: $ PowerPoint Price per each 200 Profit on just that software 20000 Excel Bundled Pricing If Microsoft were to only sell the three products as a bundle, what price should they set for bundle? S what would be the profits?$ Mixed Pricing Suppose that Microsoft offered a bundle of all three for $375, but it also offers a price of $200 for each software separately. What is the new profit level for this pricing scheme? $ Word
Transcribed Image Text:The following table contains different consumers' values for three software titles: PowerPoint, Excel, and Word. Suppose there are 100 consumers of each type. It costs Microsoft $0 to produce each piece of software. Consumer Types Administrative Assistants PowerPoint Excel Word Marketing/Sales Accountants 75 200 100 200 100 125 25 250 25 When customers are indifferent, they choose the option where they buy more software A la carte Pricing If Microsoft were to sell each of the software individually, what price should it set for each and what would its profits on each be? Total profit on all software: $ PowerPoint Price per each 200 Profit on just that software 20000 Excel Bundled Pricing If Microsoft were to only sell the three products as a bundle, what price should they set for bundle? S what would be the profits?$ Mixed Pricing Suppose that Microsoft offered a bundle of all three for $375, but it also offers a price of $200 for each software separately. What is the new profit level for this pricing scheme? $ Word
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