Question

i need help worh this problem please

Homework (Ch 14) Attempts: Average: 12 6. Individual Problems 14-6 At a student cafe, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (le, she cannot price.discriminate). Students with Early Classes Students without Early Classes Coffee 73 Banana 48 The marginal cost of coffee is 5 and the marginal cost of a banana is 20. The cafe owner is considering three pricing strategies: 1. Mixed bundling: Price bundle of coffee and a banana for 161, or just a coffee for 73. 2. Price separately: Offer coffee at 63, price a banana at 98. 3. Bundle only Coffee and a banana for 121. Do not offer goods separately.

Answer 1

1.mixed bundle,

Revenue=161+73=234

Cost=10+20=30

Profit=204

2. Price separately

Revenue=63*2+98=224

Cost =2*5+20=30

Profit=194

3. Bundle

Revenue=121*2=242

Cost=2*5+2*20=50

Profit=192