Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CAN YOU PLEASE HELP ME SOLVE THIS PROBLEM PLEASE PROVIDE CALCULATIONS ON HOW YOU RECEIVE ANSWER THANK YOU I AM IN TEARS. A manufacturer of

CAN YOU PLEASE HELP ME SOLVE THIS PROBLEM PLEASE PROVIDE CALCULATIONS ON HOW YOU RECEIVE ANSWER THANK YOU I AM IN TEARS.

image text in transcribed
A manufacturer of microwaves has discovered that male shoppers have litde value for microwaves and attribute almost no extra value to an auto defrost feature. Female shoppers generally value microwaves more than men do and attribute greater value to the auto-defrost feature. There is little additional cost to incorporating an autodefrost 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 $53 and one with autodefrost at $65, while women value a simple microwave at $65 and one with autodefrost at $118. Suppose the manufacturer is considering three pricing strategies: 1. Market a single microwave, with autodefrost, at $65, to both men and women. 2. Market a single microwave, with autodefrost, at $118, to onlyr women. 3. Market a simple microwave to men, at $53. Market a microwave, with autodefrost, to women at $105. For simplicity, assume there is only 1 man and 1 woman and that if the price of a microwave is equal to an individual's willingness to pay, the individual will purchase the microwave. Use the following table to indicate the revenue from men, the revenue hum women, and the hotel revenue from each strategy. Revenue from Revenue from Total Revenue from Strategy 1illl'omen Strategy Men 1. AutoDefrost Microwave only at $65 2. AutoDefrost Microwave onlyr at $118 3. Simple Microwave at $53, AutoDefrost Microwave at $105 Suppose that. instead of one man and one woman, the market for this microwave consisted entirer of women. For simplicity, you can assume this means that there are two women, and no men. .xCil'v'Eiie 13,-13.'|H,:{3q I30 :0 Sc::"'u;s :0 .c.: IC Under these conditions, pricing strategy v would maximize revenue for the manufacturer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Leading And Collaborating In The Competitive World

Authors: Thomas Bateman, Scott Snell

9th Edition

0078137241, 9780078137242

Students also viewed these Economics questions