Question

6. The table below contains different consumers' values for three software titles: PowerPoint, Excel and Word. Suppose there are 100,000 consumers of each type. It costs Microsoft $2 to produce each piece of software. If Microsoft wants to devise a pricing strategy that is incentive compatible between consumer types and will maximize its profit, then how should Microsoft price their products?

Consumer Type	PowerPoint	Excel	Word
Accountants	$75	$100	$150
Marketing/Sales	$125	$80	$135
Admin Assistants	$50	$175	$65

Answer 1