Yоu аre required tо dо your own work on this quiz, аnd аny assistance you receive from another student, or any assistance you give to another student will be considered unauthorized, and subject to penalties to be determined by the Honor Council. By taking this quiz, I certify that I have neither given nor received unauthorized assistance. By taking this quiz I agree that I will NOT text or use my cell phone while I'm taking my exam I will NOT cheat on this exam I will make sure my face is showing in my webcam I will NOT get help while taking his exam I will NOT help other students on their exam Note: If you think there is an issue with a question(s), just keep working on the exam. Make a note on your scratch paper and talk to your Instructor or TA after you are done with the exam. Don't stress out, just keep working and do your best. Instructions: This question paper has 2 sections i.e., Section I and Section II Section I (Questions 1 - 12) consists of 12 questions. The questions of Section I are a mix of multiple-choice questions, theory and short numerical. You have to answer all of them. Section II (Questions 13 - 18) consists of 7 long-answer problems. You have to answer all of them. Question 19 is an extra question that is optional and worth 10 points of extra credit. A single question might have multiple sub-parts. You need to answer all the sub-parts and show all the work for full credit. PLEASE SHOW ALL WORK FOR FULL CREDIT
TechNоvа Sоlutiоns develops two productivity softwаre products: LexiType, а word processor, and CalcPro, a spreadsheet tool. There are two types of customers: Writers and Analysts. Each group consists of 100 individuals, and they have the following reservation prices for each product: The company's marginal costs are zero, and the fixed costs are $8,500 for LexiType and $10,500 for CalcPro. Questions: If TechNova Solutions sells LexiType and CalcPro separately, what are the profit-maximizing prices, and what is the maximum achievable profit? (4 points) What is the total value of these software products to the 200 customers if they received them for free? (In other words, calculate the total consumer surplus without pricing.) How does this compare to TechNova’s fixed costs? (4 points) Suppose TechNova Solutions cannot charge different prices to different customer groups and must set a single price for each product. What alternative pricing strategy could the company use to generate higher profits than selling separately? (4 points) LexiType CalcPro Writers 75 50 Analysts 40 70