What is the revenue under this price strategy?

A university has determined that its students fall into two categories when it comes to room and boa Show more A university has determined that its students fall into two categories when it comes to room and board demand. University planners call these two types Sleepers and Eaters. The reservation prices for a dormitory room and the basic meal plan of the two types are as follows: Sleepers Eaters Dorm Room $5500 $3000 Meal Plan $2500 $6000 (a). (10 points) Currently the university offers students the option of selecting just the dorm room at $3000 just the meal plan at $2500 or both for a total price of $5500. What is the revenue under this price strategy? (b). (10 points) An economic consultant advises the university to stop offering the two goods separately and instead to sell them only as a single combined room and board package. Explain the consultants strategy. What price the university should set for the combined product? What is the revenue under this price strategy? Show less

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