Question
reater value to the auto-defrost feature. There is little additional cost to incorporating anauto defrostfeature. Since men and women cannot be charged different prices for
reater value to the auto-defrost feature. There is little additional cost to incorporating anauto defrostfeature. Since men and women cannot be charged different prices for the same product, the manufacturer is considering introducing two different models. The manufacturer has determined that men value a simple microwave at $75 and one with auto-defrost at $90 while women value a simple microwave at $90 and one withauto defrostat $150.
A. If there is an equal number of men and women, what pricing strategy will yield the greatest revenue?
B. What if mostof microwaves' shoppers arewomen?
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