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A software firm can offer a high-feature version of its software or a stripped-down low value version, each with similar production costs. Which of the following cannot be an optimal strategy?
offer only the low-value version aimed at all market segments
When a firm practices perfect price discrimination, that is, by charging each customer exactly what they are willing to pay, then,
the marginal revenue is the demand curve
What is the total profit to the monopolist from selling the goods separately?
$7,000
Assume that the price elasticity of demand for movie theatres is–0.85 during all evening shows but for all afternoon shows the price elasticity of demand is–2.28. For the theater to maximize total revenue, it should
charge a lower price for the afternoon shows and higher price for the evening shows, holding other things constant
Airlines charge a ____ price to business travelers compared to leisure travelers because business travelers have a ____ demand than leisure travelers
higher; less elastic
