Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Microsoft is going to sell a student version of Office (excluding Access and outlook) and full version of Office. Assume there are three market segments

Microsoft is going to sell a student version of Office (excluding Access and outlook) and full version of Office. Assume there are three market segments whose size and valuations for each version of Office of given in the following table. What price for each version of Office can maximize Microsofts revenue? (Q6.xlsx)

Segment

Student Version

Full Version

Size(number of Customers)

Students

$110

$160

20

Individual (non student)

$170

$300

40

Businesses

$240

$500

40

Note1: If the price of Student Version is greater than Full Version, then penalty charge is $50,000

Note2: Prices no more than $500.

Write important computation steps in your copy and mention final result. [10]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

International Trade Finance

Authors: Indian Institute Of Banking & Finance

1st Edition

9386394723, 978-9386394729

More Books

Students also viewed these Finance questions

Question

What regular expression does this machine represent? S 0 P 0,1

Answered: 1 week ago

Question

What are the main objectives of Inventory ?

Answered: 1 week ago

Question

Explain the various inventory management techniques in detail.

Answered: 1 week ago