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hiusy98 hiusy98
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7 years ago
Assume an automobile manufacturer can sell its sport utility vehicle (SUV) with or without a trailer towing package. One group of customers, group A, is willing to pay a maximum of $30,000 for the SUV and $1,100 for the towing package. A second group, B, is willing to pay $29,000 for the SUV and $1,000 for the towing package. Assuming the manufacturer cannot price discriminate, to maximize its revenues the manufacturer should:
A) sell the components separately, charging $30,000 for the SUV and $1,000 for the towing package.
B) sell the components separately, charging $29,000 for the SUV and $1,100 for the towing package.
C) sell the components separately, charging $29,000 for the SUV and $1,000 for the towing package.
D) sell the components as a bundle for $30,500.
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Economics for Managers

Economics for Managers


Edition: 3rd
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andyborziandyborzi
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7 years ago
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hiusy98 Author
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7 years ago
This course was so challenging before I signed up here, thanks
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