Question
There are no additional costs of market development There are no additional costs for version completion There is no marginal costs for each unit produced
- There are no additional costs of market development
- There are no additional costs for version completion
- There is no marginal costs for each unit produced
Assume that a consumer who receives zero surplus still will buy the software. If customers get the same surplus from two products, half of the population will buy each version.
|
|
| Basic Version Your Price: $_________ | Premium Version Your Price: $_________ | ||
| Segments | Size | Price | Surplus | Price | Surplus |
| Corporations | 5,000 | $500 |
| $1,000 |
|
| Consultants | 10,000 | $200 |
| $500 |
|
| Individuals | 20,000 | $100 |
| $150 |
|
a) (20 points) What is the maximum revenue you can earn if you sell only one version?
(Please show your calculations)
Only Basic: Price: ___ Unit Sales: ____ Revenue: _____
Only Premium: Price: __ Unit Sales: ____ Revenue: __
Version to Sell (circle one): Basic | Premium
Explanation:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
No Nonsense Project Auditing A Practical Guide For The PMO
Authors: Lisa Nash
1st Edition
0993403522, 978-0993403521
