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Question 4 is the paragraph for the 3 parts of 6-8. D Question 4 0.5 pts Refer to the following paragraph for answering the next
Question 4 is the paragraph for the 3 parts of 6-8.
D Question 4 0.5 pts Refer to the following paragraph for answering the next 2 questions (i.e., Q4-5). CatBike, a bicycle manufacturer, has identified two customer segments; one segment prefers a customized bicycle and is willing to pay a higher price whereas the other is willing to take a standardized bicycle but is more price sensitive. Assume that the cost of manufacturing either bicycle is $200. Demand from the customized segment has a demand curve of dj = 20,000 - 10 p, and demand from the price-sensitive standard segment is d2 = 40,000 - 30 p2. Q4. What price should CatBike charge "customized segment" if there is no capacity constraint? 200 766.7 0 949.8 1,100Question o 15 pts Refer to the following paragraph for answering the next 3 questions (Le., Q6-8). Return to the bicycle manufacturer CatBike in the paragraph for Q4-5 above. Now assume that a customized bicycle costs $300 to manufacture, whereas a standardized bicycle costs $200 to manufacture, with all other data as in the above paragraph. Q6. What price should CatBike charge "standard segment" if there is no capacity constraint? 0 766.7 9498 1,100 1,250 D Question 7 0.5 pts What price should CatBike charge "customized segment" if the total available capacity is 20,000 bicycles? 916.7 1 090 0 1.177 1,287.5 D Question 8 0.5 pts What is the TOTAL profit in the QB writing above fie. total available capacity - 20,00017 40,000 13,226,297 16,102,083 17,589,580Step by Step Solution
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