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Status Quo Scenario: Brand X offers a free online calculator with digital display ads and Brand C offers a subscription-based payroll calculator with unlimited automated
Status Quo Scenario: Brand X offers a free online calculator with digital display ads and Brand C offers a subscription-based payroll calculator with unlimited automated calculations for a high price of $79.99. Scenario I: Brand X retains its free service and introduces a subscriptionbased service providing up to 300 automated calculations to take advantage of possible price discrimination through versioning. Scenario ll: 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. Question 6 Under Scenario I, what is the optimal price to maximize Brand X's total revenue (Please use Excel solver to do revenue maximization assuming zero marginal cost)? Group of answer choices A. [$19, $20] B. [$23, $24] C. $24.99 D. None of the above
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