Question
You sell two versions of the same product: fancy and basic. There are two customers, Mr H and Mr L. Mr H values the fancy
You sell two versions of the same product: fancy and basic. There are two customers, Mr H and Mr L. Mr H values the fancy version $10 and the basic version $5. Mr L values the fancy version $6 and the basic version $4. The cost of producing the fancy and basic version is the same. What are the profit maximizing prices for the fancy version and the basic version?
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Principles Of Microeconomics
Authors: N Gregory Mankiw
7th Edition
1305081676, 9781305081673
