1.The New York Times wants to price home subscriptions and web access. Of course, people can buy both home subscriptions and web access. Assume there are three market segments whose size and valuations (per month) for each product combination are given here. The cost to provide a home subscription is $15 and the variable cost to provide web access is $1. What prices maximize monthly profits? (set the penalty for price reversal as -$30,000)

Segment Home Subscription Web Access Home + Web Size

1 $30 $35 $50 25%

2 $35 $15 $40 40%

3 $20 $20 $25 35%

USING EXCEL