ECONOMICS W/CONNECT+20 >C<
20th Edition
ISBN: 9781259714993
Author: McConnell
Publisher: MCG CUSTOM
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Chapter 4.A, Problem 2ARQ
To determine
The reason for licensing.
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10) GE Fridges
Some GE refrigerators have ice and water dispensers that won't dispense ice or water unless your filter
authenticates as an official component produced by GE. Suppose one popular model costs $800 to
produce, and each filter costs just $10 to produce. Suppose further that GE has categorized their
consumers into two groups: low-volume users, who buy two filters per year and value the water and
ice dispensing fridge at $1000, and high-volume users, who buy six filters per year and value the water
and ice dispensing fridge at $1200. GE is considering two pricing strategies:
●
Pricing strategy 1: $980 for refrigerator & $10 for filters
Pricing strategy 2: $940 for refrigerator & $25 for filters
a) Which pricing strategy would GE prefer?
b) Based on the information in the question, I want you to come up with a better pricing strategy than
what's been proposed. Specifically, what's the optimal price for the refrigerator and the optimal
price for filters that will maximize…
M7
A group of 200 people seek out an insurance company to underwrite health insurance for its members. It expected
medical spending for the group is $1,200,000, what will the average premium bn If the health insurance company
adds a leading fee of 20 percent?
$14,400
$12,000
O $7,200
O $6,000
Chapter 4 Solutions
ECONOMICS W/CONNECT+20 >C<
Ch. 4.A - Prob. 1ADQCh. 4.A - Prob. 2ADQCh. 4.A - Prob. 3ADQCh. 4.A - Prob. 1ARQCh. 4.A - Prob. 2ARQCh. 4.A - Prob. 3ARQCh. 4.A - Prob. 1APCh. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQ
Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQCh. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7P
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