You are a pricing analyst for QuantCrunch Corporation, a company that recently spent $15,000 to develop...

You are a pricing analyst for QuantCrunch Corporation, a company that recently spent $15,000 to develop a statistical software package. To date, you only have one client. A recent internal study revealed that this client’s demand for your software is Qd = 300 – 0.2P and that it would cost you $1,000 per unit to install and maintain software at this client’s site. The CEO of your company recently asked you to construct a report that compares (1) the profit that results from charging this client a single (profit-maximizing) per-unit price with (2) the profit that results from charging $1,450 for the first 10 units and $1,225 for each additional unit of software purchased.

What type of pricing strategy is (1)? Third-degree pricing strategy Per-unit pricing strategy First-degree pricing strategy Second-degree pricing strategy

What type of pricing strategy is (2)? First-degree pricing strategy Third-degree pricing strategy Per-unit pricing strategy Second-degree pricing strategy

Between pricing strategy (1) and (2), which is more profitable? Strategy (2) Strategy (1)

True or False: You could earn more profits using a two-part pricing strategy.

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Expert Solution

Rahul Sunny answered 1 year ago

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