03 Jun Question A manufacturer of microwaves has
Question
A manufacturer of microwaves has discovered that male shoppers have little value for micro-waves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men and attribute greater value to the auto-defrost feature. There is little additional cost to incorporating and auto defrost feature. Since men and women cannot be charged different prices for the same product, the manufacturer is considering introducing two different models. The manufacturer has determined that mend value a simple microwave at $70 and one with auto-defrost at $80 while women value a simple microwave at $80 and on with auto defrost at $150. If there in an equal number of men and women, what pricing strategy will yield the greats revenue? What if women compromise the bulk of microwave shoppers?
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