The Above Table Contains Different Consumers' Values for Three Software

question 92

Multiple Choice

The above table contains different consumers' values for three software titles: PowerPoint, Excel and Word.Suppose there are 100 consumers of each type.It costs Microsoft $5 to produce each piece of software.If Microsoft wants to devise a pricing strategy that is incentive compatible between consumer types and will maximize its profit, then it should

• A)charge $50 for PowerPoint, $80 for Excel and $75 for Word.
• B)charge a single price of $250 for the bundle of PowerPoint, Excel and Word.
• C)charge $125 for PowerPoint, $175 for Excel and $150 for Word.
• D)charge $325 for the bundle of PowerPoint, Excel and Word and permit consumers to purchase each software title individually at $81.10 each.

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Definitions:

Stereotype

A widely held but oversimplified and generalized belief about a particular type of person or group of people.

Disorder

A disruption to regular bodily or psychological functioning, often causing distress or difficulty in everyday life, which can be diagnosed based on specific criteria.

Pseudopatients

Individuals who simulate an illness or condition in a clinical setting, often as part of a study to test the diagnostic processes and biases of health care providers.

Mental Health System

The network of services and supports available for individuals dealing with mental health conditions, including therapy, medication, and social support.