Read the scenario and Complete the blank spaces in table below for the combined market of parcels and packages

Seven years ago, you started a crosstown delivery service. You have two types of service. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb. capacity bike trailer for anything weighing up to 10 lbs. Initially, you charged the same price for each service, but since the beginning of the Covid-19 pandemic, you have seen an increase in the demand for your package service. The demand for the package service seems to be more inelastic than the demand for parcels. You are now wondering if you should charge different prices for the parcel service and the package service, i.e. should you segment your market? Does segmentation increase profits?

Completed the blank spaces in table below for the combined market of parcels and packages

Price Parcles and Packages TR MR TC MC MR-MC Profit

50 5,000 1,600 3,400

90 10,800 83 2,300 10 73 8,500

80 190 15,200 63 3,000 10 53

260 18,200 43 3,700 10 33 14,500

60 19,800 23 4,400 10 13 15,400

50 400 20,000 3 5,100 10 -7

470 18,800 -17 5,800 10 -27 13,000

30 16,200 -37 6,500 10 -47 9,700

20 610 12,200 -57 7,200 10 -67

10 680 6,800 -77 7,900 10 -87 -1,100