Question
I'm working on an exercise on song pricing using an excel spreadsheet of data from 100 participants valuations of 10 songs for digital downloads. Instructions
I'm working on an exercise on song pricing using an excel spreadsheet of data from 100 participants valuations of 10 songs for digital downloads. Instructions are as follows:
"To do this exercise, you should copy the data to Excel, and I suggest creating two new tabs:
A second tab, which sorts these valuations in decreasing order. This allows us to calculate the potential revenue from selling all 10 songs at a uniform price. If all songs were priced at $11, one song would be sold for a total revenue of $11. If all songs were prices at $10.43, two songs would be sold for a total revenue of $20.86 -- and so on. Add a "Revenue" column in this tab, which calculatesn*price, wheren counts how many songs would be sold if all songs were priced atprice.
A third tab that sums the valuations of the 10 songs for each participant. This provides how much each individual would be willing to pay if the 10 songs were sold as a bundle. For example, Participant 65 would pay $37.32 for the bundle of 10 songs. Sort the valuations in decreasing order, so creating a revenue column as above tells us how much revenue could be made by sellingn bundles at a givenvaluation"
First question is: Find the profit maximizing uniform price of songs using the data.
I have sorted the data as requested, but am unclear on next steps. Can you help me find the profit maximizing uniform price?
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