Question
In: Economics
You manage a cable company that offers 2 channels - NBC and Fox. You face 2...
You manage a cable company that offers 2 channels - NBC and Fox. You face 2 types of customers (type A and type B) and there are 100 customers of each type. Their respective values for each channel are:
| Type A | Type B | |
| NBC | $10 | $15 |
| Fox | $3 | $7 |
Suppose that you sell each channel separately. You should set a price of $_____ for NBC and a price of $______ for Fox.
Solutions
Expert Solution
For type B NCB price $15 should be set which gives revenue of 750 .
For type A Fox price $3 which gives revenue 150 .
Total revenue = 900 which is maximum .
So NCB price = $15
Fox price = $3
Rahul Sunny answered 1 year agoRelated Solutions
You manage a cable company that offers 2 channels - NBC and Fox. You face 2...
You manage a cable company that offers 2 channels - NBC and Fox.
You face 2 types of customers (type A and type B) and there are 100
customers of each type. Their respective values for each channel
are: Type A Type B NBC $10 $15 Fox $3 $7 If the marginal cost of
selling each channel is $1 per channel, what is the most profitable
strategy? sell the channels separately bundle the channels
indifferent between selling separately and bundling...
You manage a cable company that offers 2 channels - NBC and Fox.You face 2...
You manage a cable company that offers 2 channels - NBC and Fox.
You face 2 types of customers (type A and type B) and there are 100
customers of each type. Their respective values for each channel
are: Type A Type B NBC $10 $15 Fox $3 $7 If you bundle the two
channels together, what price should you charge for the bundle?
(Write answer without the dollar sign.)
ou manage a cable company that offers 2 channels - NBC and Fox.You face 2...
ou manage a cable company that offers 2 channels - NBC and Fox.
You face 2 types of customers (type A and type B) and there are 100
customers of each type. Their respective values for each channel
are:Type AType BNBC$10$15Fox$3$7If the marginal cost of selling each channel is $1 per channel,
what is the most profitable strategy?sell the channels separatelybundle the channelsindifferent between selling separately and bundling the
channels
You are a manager of a company that sells cable television channels. You are thinking of...
You are a manager of a company that sells cable television
channels. You are thinking of bundling a nature channel and a
travel channel. Suppose that the marginal cost of each channel is
zero. You have equal numbers of two types of customers. The table
lists the maximum monthly price each type is willing to pay for
each product.
Customer
Maximum price willing to pay for a nature channel
Maximum price willing to pay for a travel channel
A
$0.75...
XYZ Cable Co. is trying to decide whether to bundle 2 channels: its “Sports” channel and...
XYZ Cable Co. is trying to decide whether to bundle 2 channels:
its “Sports” channel and its “History” channel. It has identified 2
type of customers who regularly subscribe to these channels,
“Sports Nuts” and “History Buffs”.
Below is the willingness to pay of Sports Nuts and History Buffs
for each of the channels.
Willingness to Pay
Number of Customers
Sports Channel
History Channel
Sports Nuts
10,000
$20
$4
History Buffs
2,000
$3
$10
Assuming that the incremental cost of...
XYZ Cable Co. is trying to decide whether to bundle 2 channels: its “Sports” channel and...
XYZ Cable Co. is trying to decide whether to bundle 2 channels:
its “Sports” channel and its “History” channel. It has identified 2
type of customers who regularly subscribe to these channels,
“Sports Nuts” and “History Buffs”.
Below is the willingness to pay of Sports Nuts and History Buffs
for each of the channels.
Willingness to Pay
Number of Customers
Sports Channel
History Channel
Sports Nuts
10,000
$20
$4
History Buffs
2,000
$3
$10
Assuming that the incremental cost of...
A cable company offers two basic packages: sports and kids, and a combined package. There are...
A cable company offers two basic packages: sports and kids, and
a combined package. There are three different types of users:
parents, sports fans, and generalists. Assume that the cable
company cannot discriminate among the three groups and must charge
all customers the same price. The following table shows the maximum
price that each type of consumer is willing to pay for each
package. Sports Package Kids Package Parents 10 50 Sports fans 50
10 Generalists 40 40
Sports Package...
You manage a donut shop that sells two goods – donuts and coffee. You also face...
You manage a donut shop that sells two goods – donuts and
coffee. You also face two types of customers – customer type A and
customer type B, and you see 100 customers of each type. Their
respective values for the 2 goods you sell are:
Type A
Type B
Donut
$3
$2
Coffee
$8
$3
If you sell donuts and coffee separately, what prices should you
charge for each?
Donuts: $______________
Coffee: $______________
If you sell the 2 goods...
Question 2. You are a financial manager of the Cinco Company and you face a choice...
Question 2.
You are a financial manager of the
Cinco Company and you face a choice between two investment
opportunities: projects A and B. The projects’ cash flows are
summarized in the following table:
Year 0
Year 1
Year 2
Project A
$100
-$70
-$35
Project B
$1,000
-$600
-$500
Assume that the opportunity cost of
capital is 12%.
Part (a)
What is the NPV of each project? Which project would you choose
based on the NPV rule?
Part (b)...
Policy Memo 2 Oneandonly Cable Company Background: You work for the Public Utility Commission (PUC) in...
Policy Memo 2 Oneandonly Cable Company
Background: You work for the Public Utility Commission (PUC) in
the City of Solo, Utah with a population of 150,000 people. The
Oneandonly Cable Company is the only cable company licensed to
operate in Solo. Most of Oneandonly’s costs are access fees and
maintenance expenses. These fixed costs total $640,000 monthly. The
marginal cost of adding another subscriber to the system is $2 per
month. Oneandonly’s demand curve can be determined from the
following...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A large cyclotron directs a beam of He++ nuclei onto a target with a beam current...
- How does BMW increase its sales
- First, launch NetBeans and close any previous projects that may be open (at the top menu...
- Project [2]: Expressions and Operators Project Goals The goal of this project is to: 1. Get...
- Why is public participation important in a community development effort? Research some local efforts at public...
- Using fuel/ air ratios. Find the values to fill in the following combustion reaction chart. Note:...
- Explain why this segmentation strategy works for BMW. (10)
ADVERTISEMENT