[Solved] Individual Problems 14-4 A manufacturer of microwaves has discovered that female shoppers have little value for microwaves and attribute alm… | Course Hero

individual Problems 14-4 Suppose the manufacturer is considering three price strategies : 1 .

A manufacturer of microwaves has discovered that female shoppers have fiddling value for microwaves and impute about no excess value to an auto-defrost feature. male shoppers by and large respect microwaves more than women and assign greater measure to the auto-defrost feature. There is little extra cost to incorporating an auto-defrost feature of speech. Since men and women can not be charged different prices for the lapp product, the manufacturer is considering introducing two different models. The manufacturer has determined that men value a simple microwave at $ 79 and one with auto-defrost at $ 148, while women value a simpleton microwave at $ 69 and one with auto-defrost at $ 79. market a single microwave, with auto-defrost, at $ 79, to both men and women. 2.

market a one microwave, with auto-defrost, at $ 148, to alone men. 3. market a simple microwave to women, at $ 69. market a microwave, with auto-defrost, to men at $ 137. For simplicity, assume there is lone 1 man and 1 woman and that if the price of a microwave is peer to an person ‘s willingness to pay, the individual will purchase the microwave. Use the following table to indicate the gross from men, the gross from women, and the full gross from each scheme. Strategy Revenue from Men Revenue from Women Total Revenue from Strategy
1. Auto-Defrost Microwave only at $ 79 2. Auto-Defrost Microwave only at $ 148 3. simple Microwave at $ 69, Auto-Defrost Microwave at $ 137

Suppose that, rather of one valet and one woman, the market for this microwave consisted entirely of men. For simplicity, you can assume this means that there are two men, and no women.

Under these conditions, pricing strategy ( 1, 2, 3 ) would maximize tax income for the manufacturer.

Individual Problems 14-6 At a student café, there are equal numbers of two types of customers with the following values. The café owner can not distinguish between the two types of students because many students without early classes arrive early anyhow ( i, she can not price-discriminate ).

Students with Early Classes Students without Early Classes coffee bean 73 63 Banana 48 98 The borderline monetary value of coffee bean is 5 and the marginal price of a banana is 20. The café owner is considering three price strategies : 1. assorted pack : Price bundle of coffee and a banana for 161, or just a coffee bean for 73. 2. price individually : volunteer chocolate at 63, price a banana at 98. 3. Bundle only : coffee bean and a banana for 121. Do not offer goods individually. Assume that if the price of an detail or pile is no more than precisely equal to a student ‘s willingness to pay, then the scholar will purchase the token or bundle. For simplicity, assume there is just one scholar with an early class, and one student without an early class.
Price Strategy Revenue from Pricing Strategy Cost from Pricing Strategy Profit from Pricing Strategy 1. assorted Bundling 2. Price individually

3. Bundle only
Pricing strategy ( 1,2,3 ) yields the highest profit for the café owner .