What is it that causes us to buy?
August 1, 2019
HRM–250 Words
August 1, 2019

A business can produce its product in different versions: Version A has a basic d Show more Pricing Strategies A business can produce its product in different versions: Version A has a basic design and a lower cost and Version B has an upgraded design and a higher cost of production. The business knows there are different types of customers High demand (H) and Low demand (L) but cannot separate the different types of customers. The number of customers of each type and the maximum each type is willing to pay for the different versions of the product are illustrated in the table. In addition the table gives the marginal cost of production for each version of the product. Number Type Version A Version B 50 H 30 45 100 L 20 20 Marginal Cost Marginal Cost 10 20 a) Assume the business offers the product in Version A only. Determine the optimal price (P*A) and compute the profit of the business. b) Assume the business offers the product in Version A and Version B. Determine the optimal prices (P*A and P*B) and compute the profit of the business. Show less


 

PLACE THIS ORDER OR A SIMILAR ORDER WITH homework handlers TODAY AND GET AN AMAZING DISCOUNT

get-your-custom-paper

The post Determine the optimal prices (P*A and P*B) and compute the profit of the business. appeared first on homework handlers .

 

“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”

The post Determine the optimal prices (P*A and P*B) and compute the profit of the business. appeared first on Homework Handlers.


Determine the optimal prices (P*A and P*B) and compute the profit of the business. was first posted on August 1, 2019 at 6:12 pm.
©2019 "Nursing Paper Tutors". Use of this feed is for personal non-commercial use only. If you are not reading this article in your feed reader, then the site is guilty of copyright infringement. Please contact me at admin@nursingpapertutors.com

 
"Is this question exact or similar to yours? We can help! Order now and Get 10% Discount! Use Code "Newclient"