IBM went to the trouble of adding five separate microchips to its ...

[Zoey63294]

IBM went to the trouble of adding five separate microchips to its F-series printers to slow them down and sell them as E-series printers for a lower price.
 
  How could any firm justify adding extra costs to production for a good that will carry a lower price tag?

Question 2

Refer to Table 4-7. The equations above describe the demand and supply for Pauline's Pickled Pomegranates. What are the equilibrium price and quantity (in thousands) for Pauline's Pickled Pomegranates?
 
  A) 20 and 10 thousand B) 60 and 20 thousand
  C) 15 and 45 thousand D) 30 and 15 thousand

[Melissahxx]

Answer to Question 1

The increase in the cost of doing so must have been less than the increased revenue associated with the higher sales from a lower-priced model. This of course is a simple case of price discrimination.

Answer to Question 2

D

[Zoey63294]

Thanks for the timely response, appreciate it

[upturnedfurball]

Gracias!