Question

In: Statistics and Probability

If seller charge $799 for the monitor, $1,499 for the computer,and $1,700 for the bundle....

  1. If seller charge $799 for the monitor, $1,499 for the computer, and $1,700 for the bundle. Which of the pricing strategies the seller uses?

(3 pts)

  1. If seller charge $799 for the monitor, $1,499 for the computer, and $1,700 for the bundle. The seller earns a revenue of _______.(3 pts)

Customer

Computer

Monitor

1

900

800

2

1100

600

3

1300

400

4

1500

200

Solutions

Expert Solution

part 1 :

Strategy used : Mixed Bundling

Mixed bundling means the seller offers a different price for each available combination of products.

part 2 :

With mixed bundling the seller charges $799 for the monitor, $1,499 for the computer, and $1,700 for the bundle.

Customer 1 buys just a monitor, Customer 4 buys just a computer, and Customers 2 and 3 buy the product bundle.

revenue = $800 + $1700 + $1700 + $1500

revenue = $ 5700


Related Solutions

WeCare is a store specialized in wearable devices that monitor health parameters. Their best seller is...
WeCare is a store specialized in wearable devices that monitor health parameters. Their best seller is the iHeart, a bracelet that continuously takes blood pressure measurements and changes color when the pressure is above a certain limit. WeCare buys iHeart at a price of $20 per unit, and sells it at $50 per unit. Each time WeCare places an order for this product, the administrative cost adds up to $400 per order. The holding rate for carrying inventory of iHeart...
In-Charge is a publicly listed firm that provides technology allowing customers to monitor their credit and...
In-Charge is a publicly listed firm that provides technology allowing customers to monitor their credit and debit card use, set spending limits and activate and de-activate cards through apps on mobile devices. The company recently struck deals with key payment processing companies to adopt this technology in order to prevent fraud. In-Charge is entering a fast growth phase, which is expected to last for 5 years. The following table contains reported income statement information for the recent year 2018 (all...
A boxed 15.0 kg computer monitor is dragged by friction 6.50 m up along the moving...
A boxed 15.0 kg computer monitor is dragged by friction 6.50 m up along the moving surface of a conveyor belt inclined at an angle of 36.8 ∘ above the horizontal. If the monitor's speed is a constant 3.00 cm/s , how much work is done on the monitor by friction, gravity, and the normal force of the conveyor belt? Wfriction = Wgravity = WN =
How does the seller/supplier determine how much to charge for a product? What must he or...
How does the seller/supplier determine how much to charge for a product? What must he or she take into account? Important: the question is part of an assignment about the Law of Supply in economics
ABC, Inc. makes three types of computer monitors: Standard, Premium, and Deluxe. The profit per monitor...
ABC, Inc. makes three types of computer monitors: Standard, Premium, and Deluxe. The profit per monitor for each is $150 for Standard, $190 for Premium, and $285 for Deluxe. For the coming month, the combined production of Standard monitors and Premium monitors must be at least 50,000 but must not exceed 70,000. The production of Deluxe monitors must be at least 30,000. Also, the production of Standard monitors must not exceed the production of Deluxe monitors plus 10,000. The company...
A standard 14.16-inch (0.360-meter) computer monitor is 1024 pixels wide and 768 pixels tall. Each pixel...
A standard 14.16-inch (0.360-meter) computer monitor is 1024 pixels wide and 768 pixels tall. Each pixel is a square approximately 281micrometers on each side. Up close, you can see the individual pixels, but from a distance they appear to blend together and form the image on the screen. If the maximum distance between the screen and your eyes at which you can just barely resolve two adjacent pixels is 1.30 meters, what is the effective diameter d of your pupil?...
You are in charge of awarding all personal computer services related contracts for your employer.
Computer EthicsYou are in charge of awarding all personal computer services related contracts for your employer. In the recent e-mail to the current holder of the service contract for your company, you casually exchange ideas about home landscaping, your favorite pastime. In your e-mail, you stated that you wished you had a few Bonsai trees in your garden. Upon returning from a vacation, you discover three trees in your garden. There is a brief thank you note in your mailbox...
Your computer manufacturing firm must purchase 12,000 keyboards from a supplier. One supplier demands a payment of $144,000 today plus $12 per keyboard payable in one year. Another supplier will charge $25 per​ keyboard, also payable in one year. The​ ri
Your computer manufacturing firm must purchase 12,000 keyboards from a supplier. One supplier demands a payment of  $144,000 today plus $12 per keyboard payable in one year. Another supplier will charge $25 per keyboard, also payable in one year. The risk-free interest rate is 9%. a. What is the difference in their offers in terms of dollars today?  Which offer should your firm take? b. Suppose your firm does not want to spend cash today. How can it take the first offer...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT