Problem VI A-B: Apple was able to make two of these products.
There are three versions of the Iphone: Iphone 5s (and Iphone 5c) Take a look
The cost of production has zero. On the other hand, there are two kinds of customers
The market, educated consumers and children. Knowledgable
Iphone 5s consumers are willing to pay $220 more for the superior technology of this phone
The Iphone 5c is only $120 Kids don’t know that much about
Technology and color are their passions so their values range from $110 to $110
Iphone 5c and Iphone 5s. Apple has designed a
Pricing strategy for the Iphone
a) Apple may consider price discrimination
Strategy to sell Iphone 5s and Iphone 5s directly to educated customers
Iphone 5c to children for different prices The write down
Individual rationality and incentives compatibility restrictions
The two kinds of customers. The best prices are found.
b) Consider N consumers total.
The percentage of educated consumers in the United States is: It means that there are no?N consumers who know what they’re doing.
(1) Knowledgeable consumers ?N children on the market. Send the
Apple profit function if price discrimination is
put into action.
This question is not for me. Please reply in detail.
You also understand the subject. Many thanks!
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