If manager adopts a first-degree price discrimination

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Cyberelectronics produces three products cyberdesktops, cyberlaptops and cybercameras which sells to two types of consumers, type 1 and type 2. There are 10,000 of type 1 and 50,000 of type 2, with the following valuations for the three products:

Consumer Type Cyberdesktops Cyberlaptops Cybercameras
1 $250 $150 $100
2 $200 $75 $250

(a) If the manager price each product separately (i.e., using a standard pricing strategy), what prices should she charge to maximize revenues and what are the revenues?

(b) If the manager adopts a first-degree price discrimination policy, what prices should she charge to maximize revenues and what are the revenues?

(c) If the manager uses a commodity-bundle strategy such that the products are sold as one item (i.e., she markets all products together), what price should she charge to maximize revenues and what are the revenues?

Reference no: EM13391241

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