Suppose your marketing department does a survey of potential users and finds that these users place the
Question:
If the numbers of home and commercial users are equal, and you cannot distinguish between commercial and home users, what is the most profitable pricing strategy? Assume theMCof production is zero. Explain your answer.
a. Sell to only commercial users.
b. Sell to only home users.
c. Sell to both groups using a single price.
d. Sell to both groups at two differentprices.
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Related Book For
Managerial Economics A Problem-Solving Approach
ISBN: b00btm8fk0
2nd Edition
Authors: Luke M. Froeb, Brain T. Mccann
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