Question
Scenario II: Brand X retains its free service and introduces two additional subscription-based services: one providing up to 300 automated calculations and the other providing
Scenario II: Brand X retains its free service and introduces two additional subscription-based services: one providing up to 300 automated calculations and the other providing an ad free environment for manual calculations targeted at ad sensitive customers.
Under Scenario II, which of the following statements is true at optimal prices? Group of answer choices A. The free service of Brand X continues to retain the majority of the market share. B. Brand Xs total revenue is less than what it was under a 2-product product-line (i.e. without an ad free manual calculator). C. Brand X now dominates the market in terms of both total revenue and market share. D. None of the above.
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