Answered

Connect with a community of experts and enthusiasts on IDNLearn.com. Get comprehensive answers to all your questions from our network of experienced experts.

You manage a cable company that offers 2 channels - NBC and Fox. You face 2 types of customers (type A and type B) and there are 100 customers of each type. Their respective values for each channel are:

Type A Type B
NBC $10 $15
Fox $3 $7

Suppose that you sell each channel separately. You should set a price of $__________ for NBC and a price of $_________ for Fox.

Sagot :

Anthougoidn

Answer:

You should set a price of $___15_____ for NBC and a price of $___7___ for Fox.

Explanation:

a) Data and Calculations:

Customer           Type A      Type B  Maximum Price

NBC                       $10           $15            $15

Fox                         $3             $7              $7

Combined value  $13           $22

b) The cost of each channel would have enabled a better decision outcome to be reached.  However, it is better to set the maximum prices since individual values can change based on the forces of demand and supply.

We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. IDNLearn.com has the answers you need. Thank you for visiting, and we look forward to helping you again soon.