roblems: Chapters 12 andSuppose the manufacturer is considering three pricing strategies:1. Market a single microwave, with auto-defrost, at $80, to both men and women.2. Market a single microwave, with auto defrost, at $150, to only men.3. Market a simple microwave to women, at $70. Market a microwave, with auto-defrost, to men at $139.For simplicity, assume there is only 1 man and 1 woman and that if the price of a microwave is equal to an individual's willingness to pay, theindividual will purchase the microwave.Use the following table to indicate the revenue from men, the revenue from women, and the total revenue from each strategy.Strategy1. Auto-Defrost Microwave only at $802. Auto-Defrost Microwave only at $1503. Simple Microwave at $70, Auto-DefrSuppose that, instead of one man and ofmeans that there are two men, and no wUnder these conditions, pricing strategy1owave at $1392Revenue from$$MenRevenue fromwould maximize revenue for the manufacturer.Women$$$Total Revenue fromStrategy3an, the market for this microwave consisted entirely of men. For simplicity, you can assume this$$$ Amenofacture of microwaves he discovered that female shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature Male shoppers generally value microwaves more than women do and attribute greater value to the auto-defrost feature. There is littlenditional cost to incorporating an auto defrost feature. Since men and women cannot be charged different prices for the same product, themanufacturer in considering introducing two different models. The manufacturer has determined that men value a simple microwave at $80 and onewith auto defrost at $150, while women value a simple microwave at $70 and one with auto-defrost at $80.Suppose the manufacturer is considering three pricing strategies:1 Merkel e single microwave, with auto-defrost, at $80, to both men and women.2. Market a single microwave, with auto-defrost, at $150, to only men.3. Market a simple microwave to women, at $70. Market a microwave, with auto-defrost, to men at $139.For simplicity, assume there is only 1 man and 1 woman and that if the price of a microwave is equal to an individual's willingness to pay, theindividual will purchase the microwave.Use the following table to indicate the revenue from men, the revenue from women, and the total revenue from each strategy.Strategy1. Auto-Defrost Microwave only at $802. Auto-Defrost Microwave only at $1503. Simple Microwave at $70, Auto-Defrost Microwave at $139Revenue from$$$MenRevenue fromWomen$$$Total Revenue fromStrategy$$

Meaning of total revenue:Total revenue is the sum of money a company brings in from selling its…

Suppose the manufacturer is considering three pricing strategies: 1. Market a single microwave, with auto-defrost, at $80, to both men and women. 2. Market a single microwave, with auto-defrost, at $150, to only men. 3. Market a simple microwave to women, at $70. Market a microwave, with auto-defrost, to men at $139. For simplicity, assume there is only 1 man and 1 woman and that if the price of a microwave is equal to an individual's willingness to pay, the individual will purchase the microwave. Use the following table to indicate the revenue from men, the revenue from women, and the total revenue from each strategy.

Suppose the manufacturer is considering three pricing strategies: 1. Market a single microwave, with auto-defrost, at $80, to both men and women. 2. Market a single microwave, with auto-defrost, at $150, to only men. 3. Market a simple microwave to women, at $70. Market a microwave, with auto-defrost, to men at $139. For simplicity, assume there is only 1 man and 1 woman and that if the price of a microwave is equal to an individual's willingness to pay, the individual will purchase the microwave. Use the following table to indicate the revenue from men, the revenue from women, and the total revenue from each strategy.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.13P

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