What is the revenue under this price strategy

Assignment Help Business Economics

Reference no: EM131093107

A university has determined that its students fall into two categories when it comes to room and board demand. University planners call these two types Sleepers and Eaters. The reservation prices for a dormitory room and the basic meal plan of the two types are as follows: Sleepers Dorm Room $5,500 Meal Plan $2,500 Eaters $3,000 $6,000

(a) Currently, the university offers students the option of selecting just the dorm room at $3,000, just the meal plan at $2,500, or both for a total price of $5,500. What is the revenue under this price strategy?

(b) An economic consultant advises the university to stop offering the two goods separately and, instead, to sell them only as a single, combined room and board package. Explain the consultant’s strategy. What price the university should set for the combined product? What is the revenue under this price strategy?

Reference no: EM131093107

Questions Cloud

Competition is important source of competition for firm : Provide an example of where inter-industry competition is an important source of competition for a firm. Provide an example of where foreign competition is an important source of competition for a firm. Provide an example of where contestable markets..

What would be the consumer surplus of each group : A night-club owner has both student and adult customers. The demand for drinks by a typical student is QS = 18 − 3P. The demand for drinks by a typical adult is QA = 10 − 2P. There are equal numbers of students and adults. The marginal cost of each d..

What is the impact of leveling within slack : What is the impact of leveling within slack on the sensitivity of the network? Include a Gantt chart with the schedule table after leveling within slack - How did these changes affect the sensitivity of the network?

What is the revenue under this price strategy : A university has determined that its students fall into two categories when it comes to room and board demand. University planners call these two types Sleepers and Eaters. Currently, the university offers students the option of selecting just the do..

An unknown liquid reaches level : A container has a vertical tube, whose inner radius is 12.00 mm, connected to it at its side. An unknown liquid reaches level A in the container and level B in the tubeA????1

Discuss how a problem facing the organization impacts : Discuss how a problem facing the organization impacts your organization. Discuss how your topic of choice (a problem facing the organization) impacts your organization.

Determine if fiber content has effect on concrete strength : Analyze these data to determine if fiber content has an effect on concrete strength, and if so, describe that effect

Find the expression the relates total capacitance : Capacitors can be used in sensing applications such as fuel gauges in airplanes and vibration sensors. The following is an application where a capacitive sensor can be used to find displacement d.

User Account

All Pages