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THE FOLLOWING INFORMATION PERTAINS TO QUESTIONS 24-32 Happy Valley Software has developed a new meteorology software package that will likely revolutionize the weather forecasting industry.

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THE FOLLOWING INFORMATION PERTAINS TO QUESTIONS 24-32 Happy Valley Software has developed a new meteorology software package that will likely revolutionize the weather forecasting industry. They are looking to market the software to the following three segments: Governmental applications (500 customers) Scientific focused companies (1,500 customer) Media outlets (TV. radio) (5,000 customers) Further, assume for simplicity that: Maximum willingness to pay (price) for each segment and package marginal costs to produce the software package are presented in table below. There are no additional costs of market development. There are no fixed costs incurred for setting up each package class. Assume that segments that receive zero surplus, still will buy the package. If customers get the same surplus from two versions, they will buy the Premium version. They have developed the following two versions of the software: Premium Weather-Guesser Marginal Cost = $10,000 Marginal Cost = $1.250 Segments Maximum willingness to pay Maximum willingness to pay Government $ 100.000 $30,000 Scientific $65,000 $10,000 Media $20,000 $7.500 Based on the information provided above, what is the maximum profit generated for the Premium Version, based on your price calculated above, assuming only one version is sold? (Provide answer in dollars.) Based on the information provided iabove, what is the best price point for the Weather-Guesser Version to maximize profit, assuming only one version is sold? Production costs are provided in the table as "marginal cost" for each software package sold. (Provide answer in dollars.) Based on the information provided above, what is the maximum profit generated for the Weather-Guesser Version, based on your price calculated above, assuming only one version is sold? (Provide answer in dollars.) Based on the information providedabove, without making any calculations, what suggestions do you have to allow the Happy Valley Software company to increase its profits over what you presented above? What do you have to be concerned about when determining the correct pricing for the two options

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