Calculate firm profit, Suppose you are the manager of a

Calculate firm profit

Assignment Help Managerial Economics

Reference no: EM1371832

I would like some help with this problem to make sure I am heading in the right direction. This is from Baye sixth edition.
Suppose you are the manager of a company that produces products X and Y at zero cost. You know that different types of consumers value your two products differently, but you are unable to identify these consumers individually at the time of the sale. In particular, you know there are three types of consumers (1,000 of each type) with the following valuations for the two products:

Consumer type Product x Product Y
1 $60 $50
2 50 125
3 25 140

A.What are your firm's profits if you charge $25 for product X and $50 for product Y?
B.What are your profits if you charge $60 for product x and $140 for product y?
C.What are your profits if you charge $110 for a bundle containing one unit of product X and one unit of Product Y?
D.What are your firm's profits if you charge $175 for a bundle containing one unit of X and one unit of Y, but also sell the products individually at a price of $60 for product x and $140 for product Y?

Reference no: EM1371832

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