Difference between greater willingness to pay and lower one

Reference no: EM131793257

Assignment - Overlink is a firm that provides three services: fixed telephony, cable TV, and internet. Likewise, this company identifies three groups of families. Group 1 (G1) has a predilection by fixed telephony, Group 2 (G2), by cable TV, and Group 3 (G3), by Internet. His fact that these families have their preferences for a certain type of service, it does not mean that they cannot buy the other services.

The following table presents the disposition (in US $) to be paid by the groups for the acquisition of the three services. As all costs are fixed, then maximize the Total income is the same as maximizing economic benefit.

	telefonia fija	cable TV	internet
G1	40	20	10
G2	20	45	25
G3	10	5	50

a) If Overlink wants to set a price for each type of service separately, that Prices must be set to maximize profits. High? Or Low?

Answer found the income when a high price is set and when a low price is set.

b) If the conditions for setting the price as a whole are met (for all services to the time), what price should be set?

c) If the price variability reduced when the price is set as a whole? (Find the difference between the greater willingness to pay and the lower one)

Note: Each group has 1000 families.

Reference no: EM131793257

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