Willingness to Pay Number of Students EMBA $300 1,000 MBA $100 2,000 Refer to Ta

Question

Willingness to Pay Number of Students
EMBA $300 1,000
MBA $100 2,000

Refer to Table 12-A above.Using the same information , suppose that you can set one price for MBA students and another price for EMBA students. However, you know that MBA students are willing to resell the primer to EMBA students for their purchase price plus $60. MBA students pay $x and they can resell the primer for $(x+60). Assume there are no other cots involved in the resale, and it cannot be prevented. What are the optimal prices for the two groups of students?
Answer
a.
None of the above.
b.
Charge $240 to EMBA and $240 to MBA.
c.
Charge $240 to EMBA and $100 to MBA.
d.
Charge $300 to EMBA and $240 to MBA.

Explanation / Answer

c. Charge $240 to EMBA and $100 to MBA.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.