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I have difficulties with solving the last two questions (in bold). Please, help me to understand the

steps of solving it. Thank you!


Versioning


table1.PNG

The software company can offer two versions of its software: Basic and Advanced. Reservation prices of two groups of consumers are in the table. MC = 0. Find prices and profits for the next strategies.


a. One price for all:

b. Observation strategy:

c. Versioning:

d. How the marginal cost should change to change the best strategy?

e. How the number of consumers should change to change the best strategy?

table1.PNG

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