Managerial Economics – German brothels recently began offering a monthly subscription service

Managerial Economics, 3rd ed.Answer the following questions with details.Q1:German brothels recently began offering a monthly subscription service for multiple purcha- sers. If you thought that the brothels’encourage- ment of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral?Q2:Managerial Economics, 3rd ed.At a student café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price discriminate).Managerial Economics, 3rd ed.Students with Early ClassesCoffee 70 Banana 50Students without Early ClassesCoffee60 Banana10The MC of coffee is 10. The MC of a banana is 40. Is bundling more profitable than selling sepa- rately? If so, what price should be charged for the bundle?Q3:Managerial Economics, 3rd ed.What would efficient revenue management imply for the pricing of the Cowboys Stadium parking lot on typical game days? How about for the Su- per Bowl? How about for the many smaller events that fill less than half the lot?Q4:Managerial Economics, 3rd ed.When the Macintosh computer was introduced in 1982, Apple made it difficult for third party software developers to develop software for the platform. In contrast, Apple made it relatively easy for third party developers to make applica- tions that ran on the iPhone when it was intro- duced in 2007. Compare and contrast these two strategies.

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