The following table contains different consumers' values for three software titles: PowerPoint, Excel, andWord. Suppose there are 100 consumers of each type. It costs Microsoft $0 to produce each piece ofsoftware.Consumer TypesAdministrative AssistantsMarketing/SalesAccountantsPrice per eachProfit on just that softwarePowerPointTotal profit on all software$76$200$25A la carte pricingIf Microsoft were to sell each of the software individually, what price should it set for each and whatwould its profits on each be?PowerPointExcel$100$100$250$Word$200$125$25ExcelWordBundled PricingIf Microsoft were to only sell the three products as a bundle, what price should they set for bundle and whatwould profits be?Bundled Price $Total Profit SMixed PricingSuppose that Microsoft offered a bundle of all three for $375, but it also offers a price of $200 for each softwareseparately.What is the new profit level for this pricing scheme?$Is this mixed-pricing scheme the most profitable pricing scheme of the three we have discussed?

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 Marketing/Sales Accountants Price per each Profit on just that software PowerPoint $76 $200 $25 Total profit on all 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? Excel $100 $100 $250 PowerPoint Word $200 $125 $25 Excel Word Bundled Pricing If Microsoft were to only sell the three products as a bundle, what price should they set for bundle and what would profits be? Bundled Price $ Total Profit $ Mixed Pricing Suppose that Microsoft offered a bundle of all three for $375, but it also offers a price of $200 for each software: separately. What is the new profit level for this pricing scheme?$ Is this mixed-pricing scheme the most profitable pricing scheme of the three we have discussed?

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 Marketing/Sales Accountants Price per each Profit on just that software PowerPoint $76 $200 $25 Total profit on all 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? Excel $100 $100 $250 PowerPoint Word $200 $125 $25 Excel Word Bundled Pricing If Microsoft were to only sell the three products as a bundle, what price should they set for bundle and what would profits be? Bundled Price $ Total Profit $ Mixed Pricing Suppose that Microsoft offered a bundle of all three for $375, but it also offers a price of $200 for each software: separately. What is the new profit level for this pricing scheme?$ Is this mixed-pricing scheme the most profitable pricing scheme of the three we have discussed?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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