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For questions 12 - 15 use the following information. Online Payment Systems (OPS) provides Infrastructure and support for small businesses that would like to accept

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For questions 12 - 15 use the following information. "Online Payment Systems" (OPS) provides Infrastructure and support for small businesses that would like to accept online payments. They have three types of potential customers: - Type 3: Small businesses with sales over $10,000 per year -Type 2: Small businesses with sales under $10,000 per year -Type 1: Individuals selling products out of their homes OPS's services come in three distinct versions: - " Exontials" : just enough to allow an Individual to accept online payments - " Now Biz" : appropriate for a small business with sales under $10,000 per year - " Mature Biz" : appropriate for a small business with sales over $10,000 per year All costs for OPS are relatively small and can be assumed to be zero. The following table shows the marginal willingness to pay for each upgrade and each customer type, and the group sizos: Essentials Upgrade to Upgrade to Now Biz Mature Biz Group Size Type 3 700 300 200 10 Type 2 400 100 50 10 Type 1 200 60 0 22 13. OPS is aware of all the MWTP data and group size data in the table above, but cannot directly observe the type of any customer. What menu should OPS offer to maximize Its revenue? As usual, assume that any customer who is Indifferent between more than one option chooses the option that the seller prefers and that each customer can purchase only one option. Which of the following is the optimal menu of prices? (If a service is not listed in the menu, then it is not offered.) Price for "Essentials": $200 A. Price for "Now Biz" : Price for "Mature Biz" : $700 B. Price for "Now Biz" : $500 Price for "Mature Biz" : $1,200 Price for "Essentials" : $250 C. Price for "New Biz" : $500 Price for "Mature Biz" : $1,000 D. Price for "Essentials" : $200 Price for "Mature Biz" : $700

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