The above table contains different consumers' values for three software titles: PowerPoint, Excel and Word.Suppose there are 100 consumers of each type.It costs Microsoft $5 to produce each piece of software.If Microsoft wants to devise a pricing strategy that is incentive compatible between consumer types and will maximize its profit, then it should

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Microsoft's profit is maximized when it charges a price that is equal to the marginal cost of producing the software plus the consumer's willingness to pay. The marginal cost of producing each piece of software is $5. The consumer's willingness to pay for PowerPoint is $81.10, for Excel is $81.10, and for Word is $81.10. Therefore, Microsoft should charge $81.10 for each piece of software.

The Above Table Contains Different Consumers' Values for Three Software