Assignment:
Overlink is a firm that provides three services: fixed telephony, cable TV, and internet. The company also Identifies three groups of families. Group 1 (G1) has a predilection for fixed telephony. Group 2 (G2), cable TV, and Group 3 (G3), via the Internet. The fact that these families have their preferences for a particular type of service, does not remove that they can buy the other services. The following table presents the willingness (in US $) to pay that the groups have for the acquisition of the three services. Since all costs are fixed, then maximizing total income is the same as maximizing economic benefit.
Fixed telephony cable TV internet
G1 40 20 10
G2 20 45 25
G3 10 5 50
a. If Overlink wants to set a price for each type of service separately, what price should you set to maximize profits High? Answer found income when you set a high price and when you set a low price
b. If the conditions are set to set the price together (for all services at the same time), what price should be fixed?
c. Is price variability reduced when the price is set as a whole? (find the difference between the greater willingness to pay and the smaller).