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29 Sep 2019
The table below contains different consumers' values for three software titles: PowerPoint, Excel, and Word. Suppose there are 100,000 consumers of each type. It costs Microsoft $2 to produce each piece of software. If Microsoft wants to devise a pricing strategy that is incentive-compatible between consumer types and will maximize its profit, then how should Microsoft price their products? SHOW ALL WORK Please!
Consumer Type
PowerPoint
Excel
Word
Accountants
$75
$100
$150
Marketing/Sales
$125
$80
$135
Admin Assistants
$50
$175
$65
The table below contains different consumers' values for three software titles: PowerPoint, Excel, and Word. Suppose there are 100,000 consumers of each type. It costs Microsoft $2 to produce each piece of software. If Microsoft wants to devise a pricing strategy that is incentive-compatible between consumer types and will maximize its profit, then how should Microsoft price their products? SHOW ALL WORK Please!
| Consumer Type | PowerPoint | Excel | Word |
| Accountants | $75 | $100 | $150 |
| Marketing/Sales | $125 | $80 | $135 |
| Admin Assistants | $50 | $175 | $65 |
Chika IlonahLv10
29 Sep 2019
