Reference no: EM131403733
Microsoft sells two types of office software, a word processor it calls Word, and a spreadsheet it calls Excel. Both can be produced at zero marginal cost. There are two types of consumers for these products, who exist in roughly equal proportions in the population: authors, who are willing to pay $120 for Word and $40 for Excel, and economists, who are willing to pay $50 for Word and $150 for Excel.
a. Ideally, Microsoft would like to charge authors more for Word and economists more for Excel. Why would it be difficult for Microsoft to do this?
b. Suppose that Microsoft execs decide to sell Word and Excel separately. What price should Microsoft set for Word? (Hint: Is it better to sell only to authors, or to try to sell to both authors and economists?) What price should Microsoft set for Excel? What will Microsoft's profit be from a representative group of one author and one economist?
c. Suppose that Microsoft decides to bundle together Word and Excel in a package called Office, and not offer them individually. What price should Microsoft set for the package? Why? How much profit will Microsoft generate from a representative group of one author and one economist?
d. Does bundling allow Microsoft to generate higher profit than selling Word and Excel separately?
|
What must be true of the gym’s customers’ demands
: Explain the rationale for this dual pricing scheme. What must be true of the gym's customers' demands?
|
|
Sociological imagination for assignment
: Select at least 3 social forces from this list, that you have had little or no control over that you would like to discuss, regarding: How these forces have shaped you- your values, beliefs, behaviors?( you are using your sociological imagination!). ..
|
|
What are the media habits of the target market
: What are the media habits of the target market? What are the challenges facing PG&E regarding their current integrated marketing communications program?
|
|
What was the average closing price for sample of stocks
: The following is a list of closing prices for 15 stocks widely held by Merrill Lynch account holders. What was the average closing price for this sample of stocks? The median closing price?
|
|
What price should microsoft set for the package
: What price should Microsoft set for the package? Why? How much profit will Microsoft generate from a representative group of one author and one economist?
|
|
Concepts of presentation of self and impression management
: In Chapter 4 of the textbook, you were introduced to the concepts of "presentation of self" and "impression management." For your assignment in this unit, you will study your digital footprint using both the micro theories of self, found in Goffma..
|
|
What theory of mind-body relationship does damasio propose
: What theory of the mind-body relationship does Damasio propose instead of Cartesian dualism, and to what extent do you find it attractive and plausible? Please refer to the sad stories of Phineas Gage and Elliot in your answer
|
|
How alm tool supports security requirements throughout sdlc
: In your nomination, you must include information about how the ALM tool supports security requirements throughout the System Development Lifecycle (SDLC).
|
|
What is the weighted mean for her course performance
: If these three components are weighted at 35%, 45%, and 20%, respectively, what is the weighted mean for her course performance?
|