Use the following table for question

-Given that the firm wants to sell both the versions,how should it price its products to have the users self-sort themselves profitably?
A)No-name $60;High-end $130
B)No-name $60;High-end $100
C)No-name $40;High-end $100
D)No-name $40;High end $130

Question

​Use the following table for question
 
-Given that the firm wants to sell both the versions,how should it price its products to have the users self-sort themselves profitably?
A)​No-name $60;High-end $130 
B)No-name $60;High-end $100 
C)No-name $40;High-end $100 
D)​No-name $40;High end $130

Quizplus · Accepted Answer

To have users self-sort themselves profitably, the firm should price the no-name version low and the high-end version high. Option C offers a price of $40 for the no-name version and $100 for the high-end version, which creates a significant price difference between the two versions and encourages users who value quality and are willing to pay more to opt for the high-end version. This pricing strategy also provides a substantial profit margin for the firm as the cost difference between the two versions (given in the table as $15) is considerably less than the price difference ($60). Therefore, option C is the best choice for the firm.

​Use the Following Table for Question -Given That the Firm Wants to Sell Both the Versions,how

Use the Following Table for Question -Given That the Firm Wants to Sell Both the Versions,how