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The New York Times wants to price home subscriptions and web access. Of course, people can buy both home subscriptions and web access, or they
- The New York Times wants to price home subscriptions and web access. Of course, people can buy both home subscriptions and web access, or they can choose to buy them separately. Assume there are three market segments whose size and willingness to pay (per month) for each product combination are given in the table. The cost to provide a home subscription is $5 and the cost to provide web access is $1.
Segment | Home | Web | Home+Web | Size |
1 | 30 | 35 | 45 | 25% |
2 | 45 | 15 | 45 | 35% |
3 | 35 | 40 | 40 | 40% |
What prices maximize monthly profits? (you need to use Excel Solver to find the best prices for a mixed bundling strategy) (follow the computer/monitor example in class)(If your computer didnt run solver, even though your formulas are correct, just submit your file and let the instructor know)
- Describe (in words) a situation in which a bank can benefit from a bundling strategy. (this question is not related to question 1)
Submit one Excel file with answers to questions 1 and 2 in separate sheets.
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