Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help answer part 1,2,3 uestion Completion Status: GoAdventure notices that their customers come in three types that have varying valuations for trips to different

image text in transcribedPlease help answer part 1,2,3
uestion Completion Status: GoAdventure notices that their customers come in three types that have varying valuations for trips to different locations. There are equal numbers of each type. Each customer is willing to make up to three trips, but never more than one to each location. They value the three locations as follows: Consumer Type Value per trip (willingness to pay) Thailand France Mexico 1000 50 200 2 160 90 1000 3 10 81 5 1 1. If GoAdventure can identify the type of each consumer, how should GoAdventure set its price to type 2 consumers to maximize its profit? 10 points) 2. Suppose GoAdventure cannot identify buyers' types. And further, suppose that GoAdventure can only post prices for individual locations (ie, bundling is impossible). How should GoAdventure price to maximize profits? Show and explain your working clearly. [10 points) 3. Now suppose GoAdventure can bundle, in addition to offering prices for individual locations. How should he price? (Still assuming that GoAdventure cannot identify buyers' types). Show and explain your working clearly. [10 Points uestion Completion Status: GoAdventure notices that their customers come in three types that have varying valuations for trips to different locations. There are equal numbers of each type. Each customer is willing to make up to three trips, but never more than one to each location. They value the three locations as follows: Consumer Type Value per trip (willingness to pay) Thailand France Mexico 1000 50 200 2 160 90 1000 3 10 81 5 1 1. If GoAdventure can identify the type of each consumer, how should GoAdventure set its price to type 2 consumers to maximize its profit? 10 points) 2. Suppose GoAdventure cannot identify buyers' types. And further, suppose that GoAdventure can only post prices for individual locations (ie, bundling is impossible). How should GoAdventure price to maximize profits? Show and explain your working clearly. [10 points) 3. Now suppose GoAdventure can bundle, in addition to offering prices for individual locations. How should he price? (Still assuming that GoAdventure cannot identify buyers' types). Show and explain your working clearly. [10 Points

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

Step: 3

blur-text-image

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

Cost Accounting

Authors: James A. Cashin, Ralph S. Polimeni, Sheila Handy

3rd Edition

0070110263, 9780070110267

More Books

Students also viewed these Accounting questions

Question

Calculate the appropriate safety stock level.

Answered: 1 week ago