What is the profit-maximizing price for the two products

Reference no: EM131104153

Suppose High-Tech Software sells two products-a word-processing package and a spreadsheet package. Suppose that the business community values the word-processing package at $100 per unit and the spreadsheet package at $250 per unit while the university community values the word-processing package at $125 and the spreadsheet at $200. (Assume that the marginal cost of each unit is zero.)

a. What are the profit-maximizing price that High-Tech should charge if they sell each product separately and what is the total price of the two goods?

b. If High-Tech is able to engage in tying, what is the profit-maximizing price for the two products as a bundle?

c. Should this be legal?

Reference no: EM131104153

Questions Cloud

Men and women who play chess competitively : Based on a study of IQs of men and women who play chess competitively, a researcher concludes that playing chess causes people to become smarter. Do you agree with this conclusion?

Expert system as used in artificial intelligence : What is the definition or meaning of Expert System as used in Artificial Intelligence?

How do the yoruba gods care for the world and the people : The chameleon is an interesting character. What is the significance of the contest between Olorun and Olokun, and the way that the chameleon participates in the trickery?

How much work has to be done to pull down the cord : How much work has to be done to pull down the cord at the instant r2 = 2 ft? Neglect friction and the size of the ball. Determine the ball's speed at the instant r2 = 2 ft. Neglect friction and the size of the ball.

What is the profit-maximizing price for the two products : What are the profit-maximizing price that High-Tech should charge if they sell each product separately and what is the total price of the two goods?

Photosensitive drum : At what stage, in Laser printer technology, is a uniform negative charge is placed on the photosensitive drum?

Explain how each embodies four modernism characteristics : Choose three of the four assigned poems and explain how each embodies four modernism characteristics. If you do not choose the same four modernism characterisitics for each story, your response should take the form of three separate paragraphs, on..

Javascript function that uses for statement and document : Write a JavaScript function that uses for Statement and document. Write to output the even numbers between 1 and 11. Do not write the open and closed script tags (or) Java Script comments.

Critical review of a current debate in project management : Critical review of a current debate in project management literature and An introductory paragraph identifying the current debate you selected and why it interests you.

User Account

All Pages