Consumer Valuations for Two Software Programs Statistical Program Graphing Progr

Question

Consumer Valuations for Two Software Programs

Statistical Program

Graphing Program

Nicky

$400

$50

Vince

$300

$80

Reference: Ref 10-12

Table 10.5

Consumer Valuations for Two Software Programs

Statistical Program

Graphing Program

Nicky

$400

$50

Vince

$300

$80

Reference: Ref 10-12

(Table 10.5) Assume that the marginal cost of producing software programs is zero. If the firm priced and sold each software program separately, it would earn total revenues of ______, while a pure bundling strategy would generate the firm total revenues of ______. $380; $450 $450; $900 $700; $760 $600; $660

Explanation / Answer

Assume that the marginal cost of producing software programs is zero. If the firm priced and sold each software program separately, it would earn total revenues of $450, while a pure bundling strategy would generate the firm total revenues of $760.

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