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Price Strategy Revenue from Pricing Strategy Cost from Pricing Strategy Profit from Pricing Strategy 1. Mixed Bundling $ $ $ 2. Price Separately $ 3.
Price Strategy Revenue from Pricing Strategy Cost from Pricing Strategy Profit from Pricing Strategy 1. Mixed Bundling $ $ $ 2. Price Separately $ 3. Bundle Only Pricing strategy V yields the highest profit for the cafe owner.At a student cafe, there are equal numbers of two types of customers with the following values. The cafe owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot priceediscriminate}. Students with Early Classes Students without Early Classes Coffee 68 58 Banana 45 95 The marginal cost of coffee is ID and the marginal cost ofa banana is 40. The cafe owner is considering three pricing strategies: 1. Mixed bundling: Price bundle of coffee and a banana for 153, or just a coffee for 68. 2. Price separately: Offer coffee at 58, price a banana at 95. 3. Bundle only: Coffee and a banana for 113. Do not offer goods separately. Assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. For simplicity, assume there is just one student with an early class, and one student without an early class
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