Tyrell Corp. makes artificial pets and has a high-end designer product line and a basic line. Additionally, Tyrell Corp services three separate segments: the off-world market, comprised of 50 individuals, the Los Angles human market, also comprised of 50 individuals, and the replicant market, comprised of 100 individuals. Tyrell Corp. is not in a position to distinguish between buyers, i.e. it cannot tell which segment a buyer belongs to. The RPs of each buyer in each segment for each of the products is given below: - Off-worlders' RP for high-end pets is $10 and basic pets is $0 - LA humans' RP for high-end pets is $6 and basic pets is $5 - Replicants' RP for high-end pets is $4 and basic pets is $4 If the consumer is indifferent, break the tie in favor of the seller. Further suppose that each consumer wants at most one pet, and Tyrell Corp faces no marginal cost in its artificial pet production. 1. If Tyrell Corp sells only the high-end pets, what is the profit maximizing price? 2. If Tyrell Corp sells only the basic pets, what is the profit maximizing price? 3. If Tyrell Corp can sell both kinds of pets at different prices, what are the profit maximizing prices? 4. Suppose Tyrell Corp can take a basic line pet, pay a cost of c per pet, and turn it into a much glitchier bargain line pet. Off-worlders and LA humans do not value these glitchier pets, but replicants still value these pets at $4. 1) If c=0, what are the profit maximizing prices, and 2) what is the highest c can be for Tyrell Corp to choose to sell all three lines while maximizing profits. Tyrell Corp. makes artificial pets and has a high-end designer product line and a basic line. Additionally, Tyrell Corp services three separate segments: the off-world market, comprised of 50 individuals, the Los Angles human market, also comprised of 50 individuals, and the replicant market, comprised of 100 individuals. Tyrell Corp. is not in a position to distinguish between buyers, i.e. it cannot tell which segment a buyer belongs to. The RPs of each buyer in each segment for each of the products is given below: - Off-worlders' RP for high-end pets is $10 and basic pets is $0 - LA humans' RP for high-end pets is $6 and basic pets is $5 - Replicants' RP for high-end pets is $4 and basic pets is $4 If the consumer is indifferent, break the tie in favor of the seller. Further suppose that each consumer wants at most one pet, and Tyrell Corp faces no marginal cost in its artificial pet production. 1. If Tyrell Corp sells only the high-end pets, what is the profit maximizing price? 2. If Tyrell Corp sells only the basic pets, what is the profit maximizing price? 3. If Tyrell Corp can sell both kinds of pets at different prices, what are the profit maximizing prices? 4. Suppose Tyrell Corp can take a basic line pet, pay a cost of c per pet, and turn it into a much glitchier bargain line pet. Off-worlders and LA humans do not value these glitchier pets, but replicants still value these pets at $4. 1) If c=0, what are the profit maximizing prices, and 2) what is the highest c can be for Tyrell Corp to choose to sell all three lines while maximizing profits
