MANAGERIAL ECONOMICS & PUBLIC POLICY PROFESSOR SAMPSON SAMPLE QUIZ 2 QUESTIONS quiz. These questions are former exam questions that are provided for practice before the second Q1. (X points total) You are consulting Microsoft on pricing for two products: the Xbox 360 video game console (i.e., the game hardware) and the new Xbox video game, Halo 3 (i.e., the game software). Microsoft has identified the market for these two products - the follows: market consists of three different groups of consumers with reservation prices as Reservation Price ($) Consumer Xbox 360 console Halo 3 game A 20 100 60 60 100 20 (Some consumers (e.g., A) value the console less than others, since they have an older version of the Xbox console to play new games on.) Assume each consumer group consists of 100,000 consumers. a) What is the price at which Microsoft maximizes revenue if Microsoft sells the Xbox console and Halo 3 game separately? lo lis ni es igril cab) What is the price at which Microsoft maximizes revenue if Microsoft bundles the Xbox console and Halo 3 game together? Which of the two pricing strategies (separate pricing or bundling) do you recommend? Why? pailllod (s c) How does your answer to b) change if the consumer groups were not equal in size, De al exos but were as follows? i'll gest of luteteo ers verIT menil s 01 0 olney 19q OS.0 10dec od evianeqxa mom isblo pril griau Consumer A = 100,000 consumers Consumer B = 80,000 consumers Consumer C = 10,000 consumers Seboe to tell s idled song fethem sill bluow jarw Wlogonone srow legel1 5 Cabuelto jalil s joked song lesher aril bluow lardw , vlogonom s saw NoOld