What prices must charge to maximize revenues


Cyberelectronics produces three products cyberdesktops, cyberlaptops and cybercameras which sells to two types of consumers, type 1 and type 2. There are 10,000 of type 1 and 50,000 of type 2, with the following valuations for the three products:

Consumer Type Cyberdesktops Cyberlaptops Cybercameras
1 $250 $150 $100
2 $200 $75 $250

(a) If the manager price each product separately (i.e., using a standard pricing strategy), what prices should she charge to maximize revenues and what are the revenues?

(b) If the manager adopts a first-degree price discrimination policy, what prices should she charge to maximize revenues and what are the revenues?

(c) If the manager uses a commodity-bundle strategy such that the products are sold as one item (i.e., she markets all products together), what price should she charge to maximize revenues and what are the revenues?

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Microeconomics: What prices must charge to maximize revenues
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