Since men and women cannot be charged different

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incorporating the auto-defrost feature. Since men and women cannot be charged different prices for the same product, the manufacturer is considering introducing two different models. The manufacturer has deteremined that men value a simple microwave at $70 and one with auto-defrost at $80 while women value a simple microwave at $80 and one with auto-defrost at $150.If there is an equal number of men and women, what pricing strategy will yield the greatest revenue? What if women comprise the bulk of microwave shoppers? If they put $11 of value into the equation, and price the auto-defost feature at $139, they will give women more incentive to buy, because they will have more buyer surplus. If the predominate buyer population is women, then you should forgo men’s purchases, discontinue the simple microwave and price the auto-defrost version at $150. This will allow you to maximize your price and capture $11 more revenue per microwave oven.

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