If you price each product separately ie using standard

Reference no: EM13454557

Suppose you are a manager of a firm that produces products X, Y and Z.You know that there are two different types of consumers, type 1 and type 2, who value your products differently. You also know that there 10,000 type1 consumers and 50,000 type 2 consumers with the following valuations for the three products:

Consumer Type	Product X	Product Y	Product Z
1	$250	$150	$100
2	$200	$75	$250

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

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

(c) If you use a commodity-bundle strategy such that the products are sold as one item (i.e., you market product X, product Y, and product Z together), what price should you charge to maximize revenuesand what are the revenues?

Reference no: EM13454557

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