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After her morning commute, Kate Harding forgot to take off her bike helmet. She walked into the office with the helmet on, and she left
After her morning commute, Kate Harding forgot to take off her bike helmet. She walked into the office with the helmet on, and she left it on as she sat behind her desk. Today was the big day. One way or another she would choose a price for her e-bike. This day had been three years in the making. After graduating from Questrom, Harding went straight to work on her dream of designing a new kind of electronic bicycle. The product Harding designed looked like an ordinary bicycle, but it had a battery pack embedded in its frame. As a result of a variety of manufacturing and design innovations, the marginal cost of each bicycle was only $100. Harding and her team had done some market research. They found that they faced four groups of consumers: A, B, C, and D. Each group had a different willingness to pay for the bicycle, and there were different numbers of consumers in each group, as listed in the table below. This table implies that if Harding and her team were to set a price of $2,000 for the bicycle, a total of 15 consumers (groups A and B together) would buy it
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