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(Solved): The following table contains different consumers' values for three software titles: PowerPoint, Ex ...



The following table contains different consumers values for three software titles: PowerPoint, Excel, and Word. Suppose ther

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 \( \$ 0 \) to produce each piece of software. A la carte pricing If Microsoft were to sell each of the software individually, what price should it set for each and what would its profits on each be? Bundled Pricing If Microsoft were to only sell the three products as a bundle, what price should they set for bundle and what would profits be? Bundled Price \$ Total Profit \$ Mixed Pricing Suppose that Microsoft offered a bundle of all three for \( \$ 375 \), but it also offers a price of \( \$ 200 \) for each software separately. What is the new profit level for this pricing scheme?s Is this mixed-pricing scheme the most profitable pricing scheme of the three we have discussed?


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SOLUTION:- 1. A la carte pricing: PowerPoint: $200 (profit: $19,800)
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