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A. 508 mm (20 in)
B. 1020 mm (40 in)
C. 1525 mm (60 in)
D. 762 mm (30 in)
E. 1280 mm (50 in)
Answer: E

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A computer software company with market power is about to release two new products. The company knows that there is high variability in consumers' willingness to pay (WTP) for each individual product, but a customer with a low WTP for one good is likely to have a high WTPfor the other. If the marginal cost of software is $0, what pricing structure is MOST likely to maximize profits for the computer software firm?
A. Sell each product for a minimal price, since the marginal costs of software are extremely low
B. Sell each product at consumers' average willingness to pay
C. Sell the products at a high price but offer a discount to students
D. Sell the products together as a bundle
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C. Command-line based instruction only for Unix.
D. Graphical user interface (GUI) only for Windows.
Answer: B