Question
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]
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