Assume a market in which one company exclusively produces a certain type of software package. There are three groups of 1000 consumers each in this market: Professionals who need this software package very much and are willing to pay 100 Euro for it, students who do not necessarily need the package,

Assume a market in which one company exclusively produces a certain type of software package. There are three groups of 1000 consumers each in this market: Professionals who need this software package very much and are willing to pay 100 Euro for it, students who do not necessarily need the package, are financially limited and are thus only willing to pay 75 Euro. The third and last group of consumers are work seekers who have the lowest utility from these packages and only want to pay 20 Euro for the packages. Since the software is downloadable and already produced, the marginal costs of the software are 0.

Given that the software company knows the WTP of the respective consumer group and that they can only set one price in this market, what is the best i.e. profit maximizing price?