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August 29, 2015

Homework Help: Managerial Economics

Posted by Gregg on Sunday, February 10, 2013 at 9:33pm.

Suppose your marketing department does a survey of potential users and finds that these users place the following values on the two versions of your software.
Software Version Home Users Commercial Users
Full featured version $175 $225
Disable version $150 $200

If the numbers of home and commercial users are equal, and you cannot distinguish between commercial and home users, what is the msot profitable pricing strategy? Assume the MC of prodcution 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 different prices

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