Question

2. SoS (Sounds of Silence, Inc) prepares to launch a revolutionary system of bluetooth-enabled noise-cancellation headphones. It is estimated that about 800,000 consumers would be willing to pay S450 for the headphones; an additional 1,500,000 consumers would be willing to pay S250 for the headphones. Though SoS knows this marketing information, it cannot identify a consumer as belonging to one group of the other. SoS is considering the launch of a stripped-down version of the headphones (the stripped- down version uses wires instead of bluetooth). The 800,000 high-valuation consumers would only be willing to pay S325 for the stripped-down version. The remaining 1,500,000 consumers do not particularly care about bluetooth vs. wire connections; they are willing to pay the same S250 for either version. Both the bluetooth version and the stripped-down version cost the same to produce: S100 per unit (1) Suppose that SoS only sells bluetooth-enabled headphones. What is the optimal price? And, what is the profit under the optimal pricing policy? (Hint: Compare the profits betweern p $450 and p $250)

Answer 1

Solutron Given sos delails ラCanN.mert-# 800/000 abon version (0 Undey its mal mce 40 and p 20 = 3S0X 800000 = % 280,000,000

2. 히gd'6 800000 834, 9, 000 r ·ghmdle, above.

. Low valuation byerr csil not have an tnentive to buy epntive vertion the bent we Con de h c cue Can m apde