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Suppose you are a manager of a firm that produces products X

Paper help Economics Suppose you are a manager of a firm that produces products X

Economics

Suppose you are a manager of a firm that produces products X

Suppose you are a manager of a firm that produces products X, Y and Z. You know that there are two… Show more Suppose you are a manager of a firm that produces products X, Y and Z. You know that there are two different types of consumers, type 1 and type 2, who value your products differently. You also know that there 10,000 type1 consumers and 50,000 type 2 consumers with the following valuations for the three products: Consumer Type Product X Product Y Product Z 1 $250 $150 $100 2 $200 $75 $250 (a) If you price each product separately (i.e., using a standard pricing strategy), what prices should you charge to maximize revenues and what are the revenues? (b) If you adopt a first-degree price discrimination policy, what prices should you charge to maximize revenues and what are the revenues? (c) If you use a commodity-bundle strategy such that the products are sold as one item (i.e., you market product X, product Y, and product Z together), what price should you charge to maximize revenues and what are the revenues? • Show less

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