Which strategy yields the maximum profit

Reference no: EM132192533

Question: Assume a car-detailing company can offer customers "#1 Mom" decals and flame decals at a zero marginal and average cost. The following table shows each customer's marginal willingness to pay for each individual decal, and for a bundle containing both. Which strategy yields the maximum profit, and what maximum profit is obtained?

Mom Flame Bundle

Rachel 80 60 140

Diana 60 15 75

A) Sell separately and make a profit of 130

B) Sell Separately and make a profit of 180

C) Bundle and make a profit of 150

D) Bundle and make a profit of 215

Reference no: EM132192533

Questions Cloud

Important for organizations to have logistics strategy : Why is it important for organizations to have a logistics strategy?

?describe an example of an actual disaster : ?Describe an example of an actual disaster or crisis incident in which social media had a major impact, whether good or bad.

Draw the johnsons atc curve and fit the mc curve : Draw the Johnsons ATC curve and fit the MC curve to it. Then estimate MC at Q = 110,000. Use the profit-maximizing rules (assume P = MR for this paper).

Managing communication across languages : Discuss best practices for managing communication across languages and cultures on a virtual inter cultural team.

Which strategy yields the maximum profit : Assume a car-detailing company can offer customers "#1 Mom" decals and flame decals at a zero marginal and average cost. The following table shows each customer

Provide a comprehensive view of the utah beach : Do you think President Truman was right or wrong in his decision to drop the atomic bomb on Hiroshima and Nagasaki? Why?

Integrative paper that synthesizes the learning experience : Identification of a leadership issue in an organisation and analysis of the issue - Theories and concepts of leadership, follower-ship, and management

Analyzes the nature of the race in the past and today : Analyzes the historical significance of these two primary documents; and connect them with issues facing our country today;

Why did colonization occur in both places : Compare and contrast European colonialism in North America and South Africa. Why did colonization occur in both places?

User Account

All Pages