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The Following Table Contains Different Consumers' Values for Three Software

Question 30

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The following 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: The following 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 $300 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.


A) charge $50 for PowerPoint, $80 for Excel, and $75 for Word.
B) charge a single price of $300 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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