Question
A travel agency identifies two customer segments for a cruise ship. The demand curve for customers that are less price-sensitive is D 1 =1000-2P 1
A travel agency identifies two customer segments for a cruise ship. The demand curve for customers that are less price-sensitive is D1=1000-2P1. The demand curve for customers that are more price-sensitive is D2=1000-3P2. The cost of maintaining each cabin is $50.
If one single price is charged, what is the price to maximize the profit? What is the profit?
If the differential prices are charged to each customer segment, what is the price for each customer segment respectively? What is the total profit?
What is the profit increase by charging different prices to each customer segment compared with one single price?
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Introduction to Management Science
Authors: Bernard W. Taylor
11th Edition
132751917, 978-0132751919
