Table 14-1 Cooking Wok Value to home users Value to professional Chefs No-name brand $50 $60 High-end professional series $70 $100 Use Table 14-1 Assume no marginal costs. If the groups are of equal size and the firm can only set one price, how should the firm price the high-end wok?
Read DetailsScenario 14-1 Suppose the marketing department of StatWorks who publish STATLAB (short for STATistics LABoratory), an array-based programming environment, runs a survey that indicates commercial users (e.g., engineers, actuaries, data scientists) would be willing to pay $450 for a full-fledged version of STATLAB. Meanwhile, those commercial users would pay $300 for STATLAB’s stripped down version known as Mini STATLAB. Another inference from the survey is that academic users (e.g., professors, researchers, students) are willing to pay only $250 for a full-fledge version of STATLAB and $75 Mini STATLAB. Assume that whenever users purchase a version of STATLAB, they receive an activation key stored as plain text. Software Version Academic Users Commercial Users STATLAB $250 $450 Mini STATLAB $75 $300 Suppose survey results indicated that there are 500 academic users and 250 commercial users. Use Scenario 14-1 What would be the revenue generated if StatWorks sold only copies of Mini STATLAB at $75 per copy? How many copies would sell?
Read DetailsMathWorks develops the highly popular MATLAB, a mathematical computing software. In order to develop MATLAB, MathWorks operates three office complexes, employs sales teams to push the software, hires teams of full-time software engineers, contracts mathematician consultants, and warehouses a large amount of workstations. Which of these examples is most likely to be included in fixed cost?
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