Which of the options maximizes the revenues

Reference no: EM13202385

Assume an automobile manufacturer can sell its pickup truck with or without a towing package. Customer Group A is willing to pay a maximum of $30,000 for the truck and $1,100 for the towing package. Customer Group B is willing to pay $29,000 for the SUV and $1,000 for the towing package. Assuming the manufacturer cannot price discriminate but can bundle the products or sell them separate, which of the options below maximizes its revenues?

Reference no: EM13202385

Questions Cloud

Write out the retailers profits as a function of q and r : The marginal cost of the wholesaler is $2. It takes one unit of the input to produce one unit of the retailer's output and in addition to the price of the input the retailer has an additional marginal cost of $2. The retailer's demand curve is giv..

Can miller set prices to earn even higher profit : The seller, Ryan Miller's mom (who is a monopolist, at least with respect to these consumers, and can "produce" enough quantity to meet demand), has to determine her pricing strategy, and whether to sell the goods separately or as a bundle.

Describe why to ignore the time value of money : Normal people are willing to pay $250 and their desire to purchase doesn't vary with time. Ignore the time value of money and compute the optimal pricing scheme of the iphone. Assume that there are equal numbers of each customer type and the MC of..

Give alternative explanation that economist would look for : The dating service's owner said that the difference in price compensated for inequities in pay scales between men and women. Which of the following statements below is an alternative explanation that an economist would look for.

Which of the options maximizes the revenues : Customer Group B is willing to pay $29,000 for the SUV and $1,000 for the towing package. Assuming the manufacturer cannot price discriminate but can bundle the products or sell them separate, which of the options below maximizes its revenues

Determine the amounts petra will pay under arrangement : The second payment will be made twenty-seven months from today and will be twice the size of the first payment. The third payment will be 2.5 times the size of the first payment and will be made in 3.5 years. Determine the amounts Petra will pay u..

Find the maximum height reached by the rocket : A rocket is launched from a tower. The height of the rocket, y in feet, is related to the time after launch, x in seconds, by the given equation. Using this equation, find the maximum height reached by the rocket, to the nearest tenth of a foot.

Determine the limit by evaluating the function : Determine the limit by evaluating the function for x = 0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 20, 50, and 100, If an answer does not exist, enter DNE. Lim as x approaches infinity x^3/3^x

What proportion of packets are underweight : The actual weight of soap powder in a box has a normal distribution, with a mean of 33 oz. and a standard deviation of 0.7 oz. What proportion of packets are underweight (i.e., weigh less than 32 oz.)?

User Account

All Pages