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USE THE FOLLOWING INFORMATION FOR THE NEXT THREE QUESTIONS You have developed a software program that has three different potential configurations: basic, deluxe, and premium.

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USE THE FOLLOWING INFORMATION FOR THE NEXT THREE QUESTIONS You have developed a software program that has three different potential configurations: basic, deluxe, and premium. There are two potential types of buyers for your product: home users and small business users. The following table is the result of market research on the (total) valuations of the two buyer types for the different versions. Small Home Version business users users Basic 10 18 Deluxe 15 30 Premium 18 37 Note that the table above shows total willingness to pay, not marginal willingness to pay. All your costs are sunk, so your profit is equal to your revenue. An optimal pricing scheme, therefore, maximizes your revenue.Which of the following is an optimal pricing scheme {l.e.. a price for basic, a price for deluxe. and a price for premium you can decide not to offer all the versions if you prefer). Assume that there are 1000 buyers of each type. Assume that when consumers are indifferent. they.r purchase the higher-end product. Deluxe for $15; Premium for $22: do not off Basic. Basic for $10; Premium for $29; do not offer Deluxe. None of the other options is an optimal pricing scheme. Basic for $10; Deluxe for $22; do not offer Premium. Basic for $10; Deluxe for $20; Premium for $2 9. Find a pricing scheme that maximizes total surplus {consumer plus producer surplus] assuming that there are 1000 buyers of each type and that there are no costs. What is that maximized total surplus? 55.000 4?.000 28.000 None of the other answers is correct 52,000 Continuing to assume that there are 1000 buyers of each type and that there are no costs, what is the deadweight loss under the optimal pricing scheme relative to the outcome that maximizes total surplus (consumer plus producer surplus)? (That is, what is maximum total surplus minus the total surplus under the optimal pricing scheme.) None of the other answers is correct 19,000 8,000 OOO 0 5,000

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