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A software companyr is producing two different versions of a statistical software: a full and unrestricted (high dualitv} version that is intended for professionals who
A software companyr is producing two different versions of a statistical software: a full and unrestricted (high dualitv} version that is intended for professionals who need the full capabilities of the software and a "light", restricted version [low quality) that is indended for students who just need to learn how to use the software. The cost of production is zero. Professionals value the full version at $9 and the light version at $30G, while students value the full version at $253 and the light version at 5 15B. Assume there are 35 professionals and 45 students on this market. What is the optimal profit that the firm can extract, if it chooses to price optimallv? Consider both uniform pricing and price discrimination. Assume the firm is not able to differentiate between students and professionals. and is also not able to prevent resales
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