Some GE refrigerators have ice and water dispensers that won't dispense ice or water unless your filter authenticates as an official component produced by GE. Suppose one popular model costs $800 to produce, and each filter costs just $10 to produce. Suppose further that GE has categorized their consumers into two groups: low-volume users, who buy two filters per year and value the water and ice dispensing fridge at $1000, and high-volume users, who buy six filters per year and value the water and ice dispensing fridge at $1200. GE is considering two pricing strategies: * Pricing strategy 1: $980 for refrigerator & $10 for filters * Pricing strategy 2: $940 for refrigerator & $25 for filters

A) Which pricing strategy would GE prefer?

B) Based on the information in the question, I want you to come up with a better pricing strategy than what's been proposed. Specifically, what's the optimal price for the refrigerator and the optimal price for filters that will maximize profit (it's not pricing strategy 1 or 2)?