Chapter 13-Monopoly Menu Pricing Monopoly menu pricing (Household) p(cents) MRH CSH(6)=(6*3)/2=9=CSB(3) e regular rate program: P=6 quantity discount program: P=3, for q>=9.(package price of 27. include 9 phone calls, after that p=3/each) CSH(discount)=126/2-39=(in different) CSB( discount)=(6-1.5)*9/2+1.5*9-39=675>0(but<9) profit=6*3+27=45>36 e Wen Cao© Wen Cao 9 Monopoly menu pricing • • CSH(6)=(6*3)/2=9=CSB(3) • regular rate program: P=6 quantity discount program: P=3, for q>=9. (package price of 27, include 9 phone calls, after that p=3/each) • CSH(discount)=12*6/2-3*9=9(in different) CSB(discount)=(6-1.5)*9/2+1.5*9-3*9=6.75>0 (but <9) profit= 6*3+27=45>36 Chapter 13 – Monopoly Menu Pricing