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Suppose that technophiles are willing to pay $400 now for the latest iPhone, but only $300...

Suppose that technophiles are willing to pay $400 now for the latest iPhone, but only $300 if they have to wait a year. Normal people are willing to pay $250, and their desire to purchase does not vary with time. There are only two time periods and ignore the time value of money and compute the optimal pricing scheme of the iPhone. Assume that there are equal numbers of each customer type, and that the MC of the iPhone is $100.

a. How much is your profit if you price high and sell to only high value users? [P1]

b. How much is your profit if you price low and sell to everyone?[P2]

c. How much is your profit if you price high now and then lower the price after one year?[P3]

d. Which scheme provides you with the highest profit? A, B, or C?

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