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Please see problem on price discrimination Wooing the Power Users You are the sales nunager at International Genetic Technologies {LIE-E11) and have been tasked with

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Please see problem on price discrimination

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Wooing the Power Users You are the sales nunager at International Genetic Technologies {LIE-E11) and have been tasked with selling the rm's new DNA sequencing software, Rapist There are two types of users for Rapier power users, who will develop addons and other tools to make Rapisr more useful, and normal users, who still value the product, but who will not malse the Product more useful for others. Suppose that a fraction 2 of power users own the product then the value 1? at which a fraction f of Power users value the software at 1? or more is TZZCl f), and the value 1? at which a proportion g ofnormal users value the product at I? or more is given by TZZCl g)- The total number of power users interested in the software is 12,030, while the total number of nonnal users interested in the product is 43,1300. 11) Suppose you can not price discriminate between the power users and the normal users. What price will you set for Rapier? What are your expected prots?1 b) Now suppose you can perfectly price discriminate between normal users and power users, i.e-, you can choose one price at which you will sell to power users and one price at which you will sell to normal users. What price will you set for each set of consumers?I What are your expected prots, and why are they now higher? 1Why did you set a price of U for the power users

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