7. The Acme Software Corp. has developed - at a cost of $500,000 - two software programs for computers: a word processor; and a spreadsheet. Acme's marketing department has determined that there are three categories of potential buyers of these programs - but there is no way of identifying an individual's category at the time of sale. The three categories, along with the numbers of (annual) buyers and the maximum willingness to pay (w.t.p.) of each group, are provided in the following table. Since this is software, the marginal costs of producing and selling (online) are zero.

7. The Acme Software Corp. has developed - at a cost of $500,000 - two software programs for computers: a word processor; and a spreadsheet. Acme's marketing department has determined that there are three categories of potential buyers of these programs - but there is no way of identifying an individual's category at the time of sale. The three categories, along with the numbers of (annual) buyers and the maximum willingness to pay (w.t.p.) of each group, are provided in the following table. Since this is software, the marginal costs of producing and selling (online) are zero.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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