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1. A carving knife manufacturer produces both a generic brand and a high-end professional series. Home users value the generic brand knife at $40 and the professional series knife at $60. Professional chefs value the generic knife at $70 and the professional series knife at $130. The firm wants to sell both types of knives, and each user will only buy one knife. What prices should the firm set for the two knives to have users self-select themselves profitably?
2. For case 18 in strategic management textbook, the home video games industry, first four generations, I need to know what the overall issue for the the home video game industry case 18 is? What is the constant issue that is shown throughout the case?
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