Seven years ago, you started a cross-town delivery service. You have two types of delivery services. 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 weighting 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 increased in the demand for your package service. The demand for the package services seems to be more inelastic than the demand for parcels. You are now wondering if you should charge dif- ferent prices for the parcel and package service or should you segment the market and charge two different prices? Complete the tables below and determine the best price strategy: price the services differently in each segment; or continue the one price policy? Combined Parcels & Packages Price Parcels and TR MR TC MC MR-MC Profit Packages 100 50 1600 90 120 2300 The Packages Market 80 190 3000 70 260 3700 Price Packages TR MR TC MC MR-MC Profit 60 330 4400 100 50 450 50 10 5100 90 70 650 40 470 5800 80 90 350 30 540 6500 20 610 7200 70 110 1050 10 680 7900 60 130 1250 50 150 Parcel Market 1450 Price Parcels TR MR TC MC MR-MC Profit 40 170 1650 30 190 1850 100 O 1150 20 210 2050 90 50 1650 10 230 2250 80 100 2150 70 150 2650 60 200 3150 50 250 3650 What is the best pricing strategy? Demonstrate the 40 300 4150 difference in the profit from each strategy. 30 350 4650 20 400 5150 10 450 5650