Home-users and corporate-users

Assignment Help Business Economics

Reference no: EM131388892

A software company knows that they have two types of customers: home-users and corporate-users. For their newly released software, there are 150 home-users who would be willing to pay $350 for the software, and there are 50 corporate-users who would be willing to pay $800 for the software. The total cost of manufacturing the software is $20,000. If the software company cannot price discriminate, what price should it charge for its software to maximize profit?

Format tip: Answers must be within 0.5 of the true value to count as correct. Do not include dollar signs, negative signs, plus signs, or spaces.

Reference no: EM131388892

Questions Cloud

The lorenz curve models of income distribution : Income mobility is quite robust in the United States, with more than half of all families moving up and down at the income distribution ladder and any decade. your earnings in 2008 are a flow of funds measure. Job-related health insurance paid by the..

Who advocates gold standard as basis for monetary policy : Monetary policy is one of the more important areas of influence on the economy in the modern world yet few people really understand the intricacies of the issues involved. Based on your reading and other research, what would you say to someone who ad..

An expansionary monetary policy on output level : Assume that output (Y) is currently at the full employment level. Explain the short-run and long-run effects of the following policy measures. Support your answer with an IS-LM and AD/SRAS and LRAS diagrams. An expansionary monetary policy on (1) out..

Higher consumer confidence increases aggregate demand : “Higher consumer confidence increases aggregate demand. To offset this we must decrease the money supply. Then the price level won't need to adjust to restore equilibrium, and we'll prevent inflation.” Consider that an increase in of consumer confide..

Home-users and corporate-users : A software company knows that they have two types of customers: home-users and corporate-users. For their newly released software, there are 150 home-users who would be willing to pay $350 for the software, and there are 50 corporate-users who would ..

Depreciation rate and the production function : Let s be the savings rate, δ the depreciation rate and the production function be: y = Aka. If the share of labor is 2/3, calculate the steady-state value of k for each of the following: the product function is in per capita terms. Explain what the m..

Does this technology satisfy constant returns to scale : An economy has the technology of production: Y = K L^(1/2). does this technology satisfy constant returns to scale? does the technology display diminishing returns to capital?

The government subsidizes wide variety of programs : The government subsidizes a wide variety of programs intended to help the poor, including social insurance and poverty programs, such as income assistance programs. Which of the following are examples of social insurance? Check all that apply. Food s..

Investment is highly insensitive to interest rate : Assume that investment is highly insensitive to the interest rate. Explain what the effects are on interest and income of an increase in government expenditure (G). Which component(s) of aggregate demand are crowded out (i.e., reduced)?

User Account

All Pages