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As a Senior Executive, you have volunteered to mentor small businesses in your community to grow and become sustainable. One of your mentees - QuantCrunch

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As a Senior Executive, you have volunteered to mentor small businesses in your community to grow and become sustainable. One of your mentees - QuantCrunch Corporation is a small company that recently spent $15,000 to develop a statistical software package. To date the company only has one client. A recent internal study revealed that this client's demand for the software is Qd = 300 -0.2P (P=$1500 -5Q) and that it would cost QuantCrunch Corporation $1,000 per unit to install and maintain software at this client's site. Help your mentee- QuantCrunch Corporation with a pricing strategy by comparing (1) the profit that results from charging this client a single (profit-maximizing) per-unit price with (2) the profit that results from charging $1,450 for the first 10 units and $1,225 for each additional unit of software purchased. In your explanation to your mentee, answer the following questions: 1. What type of pricing strategy is (1)? 2. What type of pricing strategy is (2)? 3. Suggest a pricing strategy (3) and recommend which of the three maximizes profits for the firm. Show your calculations

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