A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto -defrost feature . Female shoppers generally value microwaves more than men and attribute greater value to the auto -defrost feature . There is little additional cost to incorporating an auto defrost feature Since men and women cannot be charged different prices for the same product , the manufacturer is considering introducing two different models. The manufacturer has determined that men value a simple microwave at $65 and one with auto -defrost at $85 while women value a simple microwave at $85 and one with auto defrost at $155 . A. If there is an equal number of men and women , what pricing strategy will yield the greatest revenue? B. What if most of microwaves ' shoppers are women ? Answer A The firm should charge full value to men for the simple microwave $85. This implies that women have a surplus of $20 if they buy the simple microwave . The auto defrost microwave will need to be priced so the surplus is more than $10. They may consider charging $140 for the auto defrost which would offer a surplus of $15. Answer B If women are the majority of microwave consumers it may be best to discontinue the simple microwave and charge $155 for the auto defrost microwave . If only a few buyers are men , there would not be many sales lost . However , you would make $11 more per unit for all microwaves bought by women