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equals marginal cost (MC), in practice, this simple formula does not
necessarily hold true. To extract the consumer surplus, a firm should
price solutions above and below the price point P
0
in the figure above
(P-zero being the price level where MR = MC).
(Note: A Franteractive business case articulates the logic of pricing the same
product / similar solutions at multiple price points P
0
, P
1
, P
2
, and P
3
, to
different customers. To take a sneak peak at the case, please click
2.3.1 Revenue Projections
<<To arrive at the MR curves above, you may have to provide revenue
and market share estimations / projections for this product. You may
have to identify and describe the effect of this product on the estimated
revenue and market share of other products / solutions company-wide.
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