There are two types of consumers of High Definition Television (HDTV) sets. The first type of consumer is highly eager to purchase the sets. Their demand is The resulting marginal revenue function is After the first month the HDTV sets are on the market, the first-type demand goes to zero at any price. The second type of consumer is more sensitive to price and will be the same one month after the sets are on the market. Their demand is The resulting marginal revenue function is Suppose that the marginal cost of producing HDTV sets are constant at $200. What pricing strategies might the manufacturer of HDTV sets consider to maximize profits?

Question

There are two types of consumers of High Definition Television (HDTV) sets. The first type of consumer is highly eager to purchase the sets. Their demand is  The resulting marginal revenue function is  After the first month the HDTV sets are on the market, the first-type demand goes to zero at any price. The second type of consumer is more sensitive to price and will be the same one month after the sets are on the market. Their demand is  The resulting marginal revenue function is  Suppose that the marginal cost of producing HDTV sets are constant at $200. What pricing strategies might the manufacturer of HDTV sets consider to maximize profits?

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The Answer of There are two types of consumers of High Definition Television (HDTV) sets. The first type of consumer is highly eager to purchase the sets. Their demand is  The resulting marginal revenue function is  After the first month the HDTV sets are on the market, the first-type demand goes to zero at any price. The second type of consumer is more sensitive to price and will be the same one month after the sets are on the market. Their demand is  The resulting marginal revenue function is  Suppose that the marginal cost of producing HDTV sets are constant at $200. What pricing strategies might the manufacturer of HDTV sets consider to maximize profits?

There Are Two Types of Consumers of High Definition Television