I am trying to solve the econ problem for one my homework solutions. I am stuck. Could someone help me out?
The reservation prices of three classes of demanders of Cable Channels Bravo and Disney are given below:
Class Bravo Disney
30 Year Old Adults $11 $5
12 to 15 year olds $ 8 $9
3 to 7 year olds $ 9 $10
It cost $4 to produce and distribute each Channel. The cable company can sell each separately, sell them as a bundle, or both.
a. What pricing strategy would you recommend?
b. How much more profitable is the best strategy compared to the next best?.
Are you sure that's all the information they give you?
How many adults as to compared to teens, children? Also you are talking about profitable, where are the costs, or is profitable just means revenues?
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